Thursday, 4 February 2010

Test your Risk Intelligence

Risk Intelligence Quotient (RQ) is a measure of a person’s ability to estimate probabilities accurately. People with high risk intelligence tend to make better predictions than those with low RQ.

High risk intelligence is quite rare. Fifty years of research in the psychology of judgement and decision making shows that most people are not very good at thinking clearly about risky choices. If risk intelligence was more common, the world wouldn't be mired in financial crisis, since this was largely caused by unwise lending and borrowing - both of which involve risk intelligence. Too many lenders and borrowers overestimated the chances that loans would be repaid.

The 5 minute test here will measure your will your RQ.

No comments:

Post a Comment