Why we don’t all see risk the same way… it’s a personality thing.

Risk is essential for any business.

Taking chances, trying new things, experimenting, innovating, working with new people – the list of activities that involve some level of uncertainty at work is endless. But we do it, because growth can only come from evolution.

There is always a lot of discussion in the area of risk, primarily focused on getting the balance right between unlocking new value and acting in a cautious way with strong governance around legal, people, compliance and ethics.

But did you know that YOUR PERSONALITY PLAYS A HUGE ROLE in understanding how you view risk – and how you’re likely to behave or respond during times of change, uncertainty and opportunity?

It makes sense right? Most of the innovation or change activities are created by people – and as well know, everyone is different, with their own personality, bias, habits and experience. This impacts on how they approach risk.

Today, we want to share with you the TALY Risk Personality Model and what this means for individuals and leaders at work.

Where do you think you sit?

The TALY Personality Profiling brings together…

• scientifically-backed personality profiling.

• tailored to the needs of your business, culture and the role.

• delivered through customised, locally-built AI tools.

Get in touch to find out more about how you can use TALY profiling to give you the insights you need to build great teams - from recruitment onwards! Or Book a Demo today to see how easy it is to start using TALY in your business.

What do we mean when we talk about risk?

When we talk about risk at TALY, we’re talking about it in a work context – not how likely you are to climb Mt Everest or jump from a plane.

At work, we’ve all come across different mindsets when it comes to taking chances. When presented with a new opportunity, some people are just happy to jump in and see what happens, while some hold back and act more cautiously.

Some bring an experimentation mindset, the classic suck it and see. Others hold back and will be the last to take action.

A lot of this is to do with your personality – the fundamentals of who you are, your genetics and childhood experiences, that shape the way to you connect with the world.

At play here are also you biases , and a range of other group dynamics that impact on behaviour – but that’s for another day

The TALY Risk Personality Model.

At TALY, we’re looking at what’s going on inside individuals when they are working through opportunities to trying something new and taking chances – either from their own imagination or as part of a work initiative.

Essentially, some people are more open to the idea that taking a chance can unlock new value, and then will respond differently when taking action.

Our approach to measuring risk is informed by the Barrett Impulsiveness Scale, and looks at four important elements…

RISK APPETITE

An appetite for taking risks and belief that, at times, taking risks is important and can pay off.

RISK OPTIMISM

A sense of self-belief, a confidence that things will work out, and a sense of resilience and support.

RISK SPONTANEOUSNESS

A natural tendency to act spontaneously, not to plan or prepare thoroughly or to feel a need to be certain before acting.

RISK IMPULSIVENESS

A propensity to rush ahead and to act without considered thought, acting on the spur of the moment.

Where you sit on each of these dimensions – remembering that there is no right or wrong, it’s just your personality! – will help you to understand your natural approach, what that means in different situations, and how you connect with those around you.

How does this come to life?

There is a saying that you’ve probably heard a lot (and it probably always makes you cringe!)…

Change is the only constant.

In post-covid workplaces today, with significant social, economic and technological changes (think AI!), the level of uncertainty is on the rise.

Individuals, teams and organisations need to evolve and update. This means taking chance and dealing with risk on a daily basis.

So, now more than ever, understanding your natural disposition to risk and what this means for you and your team is critical

KNOW WHERE YOU SIT.

The key priority is understanding where you sit on each of these traits – and how that impacts the mindset and approach you bring to different situations. There is no good or bad place to sit on these dimensions – but knowing yourself and how to leverage this positively is critical.

Along with this, understanding where others sit can also be just as important. Who are the natural risk takers, who are more cautious? How does this play out in your team, across the leadership? What about your customers?

EMBRACE THE DIFFERENCES.

The best outcomes come from a range of personalities bringing different perspectives, openly sharing and leveraging each others strengths. This leads to well-rounded outcomes that are likely to be thoughtful and balanced.

We’ve all read the stories about what happens when a team of high risk takers gets together without anyone to bring the balance. And on the flip side, you don’t hear the stories about teams of highly cautious and conservative individuals who tried nothing – because nothing happened!

The differences we each bring are critical to the development of strong ideas and well-considered approaching, and embracing and leveraging these differences is key to success.

MANAGE TEAMS EFFECTIVELY BASED ON THEIR PERSONALITY.

As a leader, understanding the risk profile of your team is also essential. Knowing your natural appetite to risk, and how this differs to your team, is critical. How are you communicating ideas – and how are these ideas being received by people in your team who have a different risk profile to you?

BRING IN ANOTHER PERSPECTIVE.

In most teams, it’s unlikely that you have a full range of perspectives and viewpoints. So knowing where your team sits also means you know where your blind spots are.

During key moments, make sure you leverage your network or others around the business to bring in another perspective and to challenge you, helping to make sure all sides are considered.

Remember, effective teams are built on diverse personalities working openly and effectively together. In risk, this is perhaps more true than in any other area - because the consequences matter.

As with any area at work, recognising that different personalities bring different perspectives is the key to driving great team outcomes.

The TALY approach to personality profiling brings together a unique mix of Five Factor and Emotional Intelligence profiling to help organisations, hiring managers and teams to make better decisions about recruitment and teams.

Get in touch to find out more… we love talking about this stuff! Or Book a Demo today to see how easy it is to start using TALY in your business.