Key Risk Factor #10: Status Quo Bias
Status Quo Bias causes people to be overly cautious and provides them with a strong incentive to avoid risk.
People do not like loss and often avoid circumstances that may hasten it. This defensive predisposition can lead to status quo bias which is a tendency for people to resist change even if it is their best interest to do so. It may also cause people to miss opportunities that they later regret.
How Are You Managing This Risk?
FinaMetrica - Risk Profiling SystemFinaMetrica is an online risk tolerance questionnaire that is used by leading financial advisors to assess their clients' risk attitudes, values, motivations and preferences.
UpsideRISK serves as a marketing consultant through strategic alliance with Australian company FinaMetrica to provide best practices risk tolerance assessment in the United States.
FinaMetrica specializes in risk tolerance and risk-related matters. The FinaMetrica risk profiling system is based on a psychometric test of personal financial risk tolerance. Psychometrics, a blend of psychology and statistics, is the scientific discipline for testing attributes such as risk tolerance. Psychometrics provides international standards for the development of tests and for evaluating the qualities of developed test. Numerous academic studies have employed the FinaMetrica test and/or FinaMetrica data. The system enables advisers to make valid and reliable assessments of their clients’ risk tolerance, incorporate those assessments into the financial planning process, and explain risk meaningfully.
We invite you to see for yourself why FinaMetrica Risk Profiling is being adopted enthusiastically by advisers around the world. Our free trial subscription entitles you to unlimited use of the FinaMetrica system for 30 days.
Click HERE to Trial the FinaMetrica System Free for 30 Days - No Obligation!
Blind Spots is a behavioral finance-based assessment that reveals a person's behavioral biases and risk tolerance.
Blind spots are areas that are difficult to see. It is like having spinach in your teeth: you do not know it exists unless you see it yourself in the mirror or until someone points it out to you. Our innovative new assessment, Blind Spots helps to reveal the psychological factors that can lead to poor investment decisions. Becoming self-aware of your own blind spots helps you to guard against them when making investment decisions. Helping others see their blind spots improves performance and reduces the risk of legal liabilities that are sometimes associated with errant decisions.
BLIND SPOTS FAQs:
Blind Spots is authored by Emory University economics professor C. Monica Capra and UpsideRISK's Founder and CEO, Tyler D. Nunnally.
Professor Capra's bio
Mr. Nunnally gained expertise in behavioral finance and risk tolerance while working in England for a spin-off consultancy of Oxford University. He is able to leverage over 20 years of entrepreneurial and global business experience to transfer the principles of behavioral finance to practice. He earned a Master's in International Business, graduating with Honors, from the University of St Andrews in Scotland. Click the link to view Mr. Nunnally's bio
How Are Behavioral Biases Assessed?
Research shows that people have difficulty judging risk because they often miscalculate probabilities (i.e. "'odds" or "chances"). We assess competencies in these areas and test for behavioral biases that are known to contribute to poor investment decisions, such as:
How Is Risk Tolerance Assessed?
Risk tolerance is the level of comfort with which a person takes financial risks. While some embrace risk, others try to avoid it at all cost. Assessment results are indicative of the degree to which a person likes or dislikes risk when compared to others.
Can Blind Spots Be Used With Other Assessment & Evaluation Tools?
Blind Spots' predictive powers allow you to see how a person will likely behave when making decisions that involve risk. It is to risk profiling what Myers-Briggs is to personality testing. But instead of competing against personality measures it actually complements them. A person's risk profile is the missing piece of the puzzle that enables you to take a truly "whole person approach" in assessment.
What Do I Get And How Is It Delivered?
A respondent takes the assessment online. It takes about 15 minutes to complete. After the respondent completes the assessment the individual's unique risk profile is algorithmically computed and scored. It is then compiled into a comprehensive report and delivered to you via email.
Can Blind Spots Be Adapted to Meet Our Specific Needs?
Yes, we are able to adapt Blind Spots to meet your organization's specific needs and can translate it into your language of choice. In addition, we can white label it and have the assessment validated in accordance with your organization's own population, specifications and purposes.
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