What is Risk Attitude?
Risk Attitude
Risk Attitude is at high level and shows the natural inclination or basic nature of stakeholders or organizations if they are willing to take risk or not. It represent a response chosen by stakeholders which is driven by their perception of a specific situation.
There are mainly three types of risk attitude.
- Risk Seeker – People who enjoy risk. They don’t worry too much about repercussions if the risk materialize. They are more focused on benefits they are going to get.
- Risk Averser – Risk Averse people don’t like uncertainty. They intend to take path that is most certain even if it is least rewarding.
- Risk Neutral – Risk Neutral people are quite calculative and they weigh all pros and cons before deciding to take risk or not.
Risk Attitude is difficult to measure but it does not mean we cannot do anything. In fact that would be very risky. A project manager must understand the attitude of the stakeholders to propose an appropriate risk response.
Risk Attitude comes very close to Risk Appetite. Risk Appetite is willingness or desire of stakeholders or organization to take risk to achieve a specific objective. Both are high level tendency and difficult to define. They influence and complement each other.
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Hello, I am wrapping up some PDUs for recertification. A friend sent me to a link where I heard your presentation on the 5 Habits of an Excellent PM. Being a Dr. Stephen Covey fan I listened to the presentation and really enjoyed it. It was 2013. I took many notes. Whos does the PDU claim translate with activity provider and code now with the triangle? Thanks!
Hi Gary,
Thanks for your note. Nice to learn you liked my presentation on 5 Habits of an Excellent Project Manager. You can log PDUs in Leadership category under self study. Please keep a record of your learning and link of this video to reproduce if your claim is audited.