Peter Robertshaw explores the stress-prone nature of risk managers, and how to reduce stress in your risk team

The decision to initiate the design and implementation of any kind of major risk management initiative is by its nature a very important one. However, the implication of the program failing to fulfill its objectives is potentially even more serious. The weight of that responsibility falls squarely on the shoulders of today's specialist risk managers.

Active Risk’s What Makes a Great Risk Manager? survey, which has so far received almost 700 responses from around the world, utilized the respected DISC psychometric profiling methodology and identified that there are three main personality types found in today’s risk professionals.

Sixty per cent of respondents were ‘technicians’, which fits the traditional view of risk managers. Such individuals are very careful planners, excellent at dealing with detailed and complex issues and exhibit a measure of caution when meeting their desire to generate a solution that is configured to the highest achievable standards.

Unfortunately this personality type is very prone to work-related stress. Their desire to meet deadlines without compromising standards is often at odds with management’s need to roll our risk management programs throughout the organisation as quickly as possible.

Our research has revealed the presence of two other less expected personality types that are emerging as risk professionals. Within the function there are also ‘drivers’ (10% of respondents) whose single-minded determination is highly effective in completing risk management projects to tight time scales and budgets.

The remaining 30% are ‘evangelists’, whose charm, diplomacy and persuasive eloquence combines with their naturally sympathetic people skills to ease the implementation path for new risk management measures.

From the point of view of the risk management function, the issue of work-related stress is now becoming increasingly important, not only because of its capacity to impact so negatively upon traditional risk managers – the technicians – but because the growing range of personality types to be found in the risk management function also has the potential to cause stress if not managed correctly.

The DISC personality profiling methodology used in Active Risk’s research not only highlights a person’s personality type based on their responses but can also bring to light the stress levels that they are facing. An indication of their stress can be found directly from their responses to the standard DISC profiling questions – rather than from questions specifically asking them about the stress they are feeling. This method is likely to give a more accurate measure of actual stress levels as it does not rely on a person ‘self-diagnosing’ through answering questions explicitly asking them about stress.

Certain personality types deal with pressure better than others. If we look at a recent personality profiling exercise performed with sales professionals, results showed 94% of the group exhibiting no stress, 4% exhibiting mild stress and only 2% exhibiting major stress. This highlights the difference between pressure and stress. The sales team typically works under a lot of pressure but the personality types it attracts expect this, knows how to deal with it and may even thrive on it – hence they do not experience high stress levels.

The traditional risk manager’s personality profile, which we have labeled ‘technician’, is less well equipped to handle pressure. Technicians like to plan carefully and this requires time. As naturally cautious individuals, they know the benefit of being thorough, yet the pressure to complete a project as soon as possible seems only to grow. Even when a new measure or process is ready to implement, the final hurdle of its implementation can be one obstacle too many if they encounter resistance from other parts of the business.

Technicians rely on their ability to present the facts to support a case. Unlike other personality types, not only are they themselves not swayed by emotionally-charged arguments, but they are not adept at introducing such arguments to gain acceptance for their latest measures. Thus, in any kind of conflict, a technician can be compared to someone with a single-barreled shotgun and just the one cartridge. If the stated facts do not, as it were, strike the target, there is not much more that technicians can do.

The Active Risk survey showed 62% of risk professionals as a whole are showing no stress, 18% mild stress and 20% major stress (compared to 2% of sales professionals). When the technician personality profile is looked at alone then the results become even more worrying. Thirty seven per cent of risk professionals who fall into the technician personality grouping are exhibiting no stress, 26% mild stress and 37% major stress.

By comparison, the drivers in the risk management team will bludgeon their way forward regardless of any opposition. They will simply ignore or dismiss any inconvenient argument until the day is won. The tactics of the evangelists in the team are equally effective, although relying on a rather different style. As expert communicators they will construct every argument, logical, factual or emotional, to carry the day. Thus the presence of a broadening mix of personality types into the risk management function can represent an opportunity to minimise stress levels if the right characters are assigned to the different roles needed in the risk management implementation.

Without the evangelists and the drivers, who may win through as a result of their respective sheer dogged or persuasive persistence, traditional technician-type risk managers are left hoping that their superb knowledge and impeccable logic will carry the day. They are then facing increased stress levels if things diverge from their plan. So a risk team of mixed personalities can be a good thing for an organisation to help it meet its objectives.

However, there needs to be ongoing investment into making the team function as a coherent, effective group. Many teams within an organisation are made up of similar groupings of personality types, for example the sales team or the finance team, and they have well developed processes and ways of working.

In contrast, the risk profession is less well established, and the composition of risk teams is still evolving. If the risk team is made up of a mixture of personalities, the organisation needs to provide training and support to ensure that the team will work effectively together. Left alone the mix of different personality types could well find it hard to communicate among themselves, which could lead to frustrations and conflict.

How to reduce stress in your risk team

• Recognize that traditional risk managers – the technicians – are prone to work-related stress.
• To mitigate this stress, work hard to remove unrealistic deadlines and avoid steps which will make them feel that they compromising their high standards.
• Provide the ‘air cover’ of executive sponsorship so that the implementation of risk management throughout the business is seen as important, and hence risk managers are supported.
• Underpin the risk management process with an enterprise-wide system so that the risk team can spend more time managing risks and less time in data collection and administration.
• As the risk team evolves, introduce a mix of personality types to support the different elements needed in the rollout of risk management across the business.
• Invest time and resources into making the team work as a cohesive unit. 

Peter Robertshaw is the SVP of Global Marketing with Active Risk (Formerly Strategic Thought Group). Share your thoughts on the Active Risk blog.

Related stories:

What makes a great risk manager – part one

What makes a great risk manager – part two