How to Calculate Business Risk: The Risk Archetype Quiz

How to calculate business risk is one thing. What is business risk is entirely another. That’s where the trouble starts with trying to figure out how to calculate business risk. Where does the self stop, and the work begin?

Is inflation a business risk? Of course it is. But what about climate change? War? Even your employees? As the lines between work and the self, home, and the office have merged, so have the concerns and risks associated with both. We can’t leave work at the office anymore, or the other way around.

In fact, the way that we approach risk in our personal lives bleeds into our professional lives, for better or worse. So, in order to learn how to calculate business risk, we have to understand what kind of risk-taker we are. 

To that end, we’re introducing the Risk Archetype Quiz.

In this quiz, you’ll be asked a series of questions to learn how to calculate business risk and to help determine what type of risk taker you are. By learning how risk averse or risk prone you are, you can better understand your behaviors as a business owner and individual, as well as create strategies to keep yourself and your organization protected. 

In the full takeaway, you’ll find out what other archetypes you need to build a balanced team, specific scenarios your archetype might find itself in, and other well known business leaders that fit into your risk archetype.

For a sneak peek, here are a few profiles from some other business owners. 

How to Calculate Business Risk: The Archetypes

The Gambler

As a serial Gambler, you’re never satisfied with the status quo. You’re constantly seeking out new challenges, and are more than willing to gamble to grow. You aren’t worried about potential losses, or the harm that even considering such risks could mean for your business. The potential rewards, no matter the cost, are much more important.

Ultimately, this mindset can jumpstart an idea, and help a business take shape in the early stages. However, as a long-term strategy, consistent, high-level risk taking isn’t a means for success, nor for acquiring and retaining customers (let alone funding). 

The Sage

As The Sage of your business, you’re the expert. You’ve been there, done that. You’ve done the research, you know your stuff. You have a strong moral compass, and you’re going to make sure that the right things are done, the right way. 

Sages are rare, valuable assets to any business. They’re the ones everyone comes to with their questions, concerns, and problems. They always seem to have an answer, and a specific one at that. While this knowledge is certainly valuable, Sages can unintentionally use that knowledge to undercut or oversee other ideas and perspectives. 

The Researcher

As a Researcher, you understand that knowledge and information are the most effective tools for managing risk. You’re committed to the pursuit of knowledge, always striving for clarity and order when assessing your investments and business plans. 

The Researcher understands that risk is inevitable and that learning about the possible consequences of risk-taking is crucial for planning ahead for any risks down the road. As a Researcher, you don’t want to leave anything to chance, but prepare in advance for any future scenarios.

How to Calculate Business Risk: The Report

We didn’t stop at how to calculate business risk. Once we had gathered all the data from our business owners, we knew we had to make it accessible. To do that, we created the 2022 Startup Risk Index Report. 

We surveyed over 500 founders to find out how they thought about risk, what’s worrying them, and what they’re doing to mitigate and transfer that risk. Honestly, the answers surprised us. Here are some quick takeaways:

Methodology: The Individual vs. Business Perspective

The Concerns: What’s worrying founders, and when?

By downloading the full report, you’ll learn: 

• What’s worrying startup founders
• If founder worries are misplaced
• What the “investor factor” is
• How your archetype fairs in the market

To learn more about the best coverage for your business, check out Embroker’s digital insurance platform.