risk aversion

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Related to Risk Avoidance: Risk Mitigation, Risk reduction

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.

risk aversion

The tendency of investors to avoid risky investments. Thus, if two investments offer the same expected yield but have different risk characteristics, investors will choose the one with the lowest variability in returns. If investors are risk averse, higher-risk investments must offer higher expected yields. Otherwise, they will not be competitive with the less risky investments.

risk aversion

the tendency for managers, consumers and other decision-makers to avoid undertaking risks and to choose less risky alternatives. See RISK PREMIUM.

risk aversion

the tendency for managers, consumers and other decision makers to avoid undertaking risks and to choose less risky alternatives. See RISK PREMIUM.
References in periodicals archive ?
"In the government sector, there is a mindset that's a little more risk avoidance. In the commercial sector there's a little more risk-taking," Davis said.
is a message to youth that normalizes the optimal health behavior of avoiding nonmarital sexual activity." (3) In 2012, the primary advocacy organization for abstinence-only programs, the National Abstinence Education Association (NAEA), dropped "abstinence" from its name altogether and rebranded itself as "Ascend." Nevertheless, most of the "sexual risk avoidance" curricula endorsed by Ascend are the same as the "abstinence education" curricula promoted by NAEA prior to 2012 and have the same goals.
She was afraid of being rejected after making her pitch, and her research was a form of risk avoidance.
While risk avoidance has its place in your risk management plan, the risk-reduction tool will help build the controlled risk environment so essential for growth and fun.
The newspaper said State Department documents also now refer to sex education as "sexual risk avoidance."
(http://www.focusonthefamily.com/socialissues/citizen-magazine/changing-the-conversation) In an article published in Focus on the Family's Citizen magazine , Huber said she prefers the term "sexual risk avoidance" to abstinence education.
But risk avoidance can also result in the kind of micro-management that can stifle the supply chain.
Coping strategies mainly include risk avoidance, risk transfer and risk control, and there are different ways to deal with different types of risk.
--risk prevention (including risk avoidance)--is directed at eliminating sources of risk or reducing substantially the likelihood of their occurrence (for example, more detailed planning, regular inspections and audits);
Vince had been a study in risk avoidance yet, with a maiden Test 50 tantalisingly close, he fell to Amir's first delivery with the second new ball.
One can also show that the value of risk avoidance declines (see Appendix A).
* Predictive analytics: Predictive modeling of risk ultimately increases profitability through adverse risk avoidance and improved speed, efficiency and consistency of decisions.