The Times has an interesting article on investors’ attitudes to financial risk tolerance. Data suggest that investors’ perceived and actual risk tolerances can markedly differ, affecting the suitability of their investment portfolios.
So why’s this relevant? Well, as testers we always make risk-based calls on what to test and to what extent. We therefore need to understand how our perception of our own risk tolerance maps to that of the business so that these decisions are in line with what the delivery, and business, needs.
For a short while The Times has teamed up with finametrica.com who provide an online risk tolerance questionnaire. It’s obviously geared towards financial risk, but it’s well worth a look to see how your own risk tolerance maps to that of the adult population.