Risk quotient
Risk quotient (RQ) as it pertains to human behavior is a measure of a person's natural level of risk inclination. Researched and defined by author and professional skydiver Jim McCormick in behavioral sciences, RQ builds on the concept of risk quotient operative in finance and both environmental and medical science. RQ is represented as a numeric score based on a self-assessment documented in four books. History. Risk quotient in the context of human behavior was first defined in a 2008 book "The Power of Risk" by Jim McCormick, former COO of Anshen & Allen, and founder of  The Research Institute for Risk Intelligence. Its genesis was the result of using a test instrument developed by McCormick in empirical research to collect data on risk-taking ability and predisposition toward risk. In October 2015, he introduced the concept to attendees at The Risk Institute of Ohio State University annual conference in a session titled "Risks—Ideas Worth Talking About". Definitions. The 2012 edition of "The First-Time Manager", provides the following descriptions of the different types of risk considered in determining RQ: The numeric value resulting from the test is relative rather than absolute in the same way  that most psychological testing provides relative results. The norm is a mid-point and variances to the lower or upper end of a 1-10 scale provide a measurement of RQ. Criticism. Self-assessments have long been associated with faked results in environments and situations where it would be considered "more positive" or "more negative" to have results skewed in a particular direction. Research has also noted that respondents sometimes chose to give the most extreme response. While contamination of responses is always a possibility, the advantage to doing so with the RQ measurement tool is not clear. It is  an individual test instrument, not intended to identify relative risk inclination in teams and companies.