Assessing Psychological Capacity for Risk Taking and Risk Management

This paper outlines the theoretical framework, construction and operation of a Risk Personality Questionnaire (RPQ) and a Group Risk Personality Questionnaire (Group RPQ).

The purpose of the RPQ is to quantitatively measure an individuals psychological capacity for risk taking and risk management. The purpose of the Group RPQ is to quantitatively measure the degree to which the psychological capacity of a group of individuals is greater or less than the sum of the individual members psychological capacities. Another purpose of the questionnaires is to highlight improvement opportunities from the responses given to aid enhancing the individuals and/or the groups psychological capacity for risk taking and risk management.

The questionnaires have a number of potential uses. The RPQ could be used as part of an assessment process when hiring an investment manager or a risk manager. It could also be used as part of a performance enhancement programme for existing investment or risk managers. The Group RPQ could be used to assess the psychological functioning of a board of directors or a risk committee and to facilitate enhancing the psychological functioning of a board of directors or a risk committee.

Source
Society of Actuaries (Ireland)
Length of Resource
82
Resource File
Author
Colm Fitzgerald
Date Published
Publication Type
paper
Resource Type
academic

ResourceID: 72337

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