Risk-averse


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Related to Risk-averse: Risk neutral

Risk-averse

Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.

Risk Aversion

The subjective tendency of investors to avoid unnecessary risk. It is subjective because different investors have different definitions of unnecessary. An investor seeking a large return is likely to see more risk as necessary, while one who only wants a small return would find such an investment strategy reckless. However, most rational economic actors are sufficiently risk averse such that, given two investments with the same return and different levels of risk, they would choose the less risky investment.
References in periodicals archive ?
People continue to be risk-averse, but more than 20% say they can't afford to be too cautious
Failure to reach consensus on such a mechanism would result in continued risk-averse behavior by transplant centers undermining innovation and hampering advancement of the field of transplantation and ultimately compromising patient care.
Although we must all take a responsible approach to lending, that doesn't mean becoming so risk-averse that we simply exclude millions of creditworthy consumers.
That experience, combined with my CIMA training, means that I probably do have a risk-averse element, but I don't see that as a bad thing.
Lord Jones - who previously headed the CBI as Digby Jones and quit the Government after just over a year on Friday - said: "What I found very frustrating was that I have never met a more risk-averse system in my entire life than the Civil Service.
It's really vibrant, and it's less risk-averse because there are so many players in here, so it's a really excellent time for Sudbury.
The foreign service is a risk-averse culture, Barbara Bergen, coordinator of the awards, tells Kralev, who reports that "[n]one of the nominations this year is related to a controversial foreign policy issue, such as Iraq, Iran, North Korea, or the Israeli-Palestinian conflict.
Just as the board is risk-averse in selecting a CEO, it is likely that your current CEO is risk-averse in assigning you accountability for large-scale operations.
It should be noted that Mittlestaedt is not risk-averse.
For the risk-averse investor, royalty trusts offer diversification and a pure investment in commodities; they reduce a portfolio's overall risk and provide a hedge against inflation.
Although known to be a risk-averse studio, Paramount grew far more ambitious last year.

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