oboloo Glossary

Risk Averse

oboloo Glossary

Risk Averse

Risk Averse is a term used to describe a person or organization that prefers not to take on risky investments or activities. They usually prefer to play it safe and take the least risk possible. This attitude is evidenced in their business decisions, where they prioritize stability and consistency over growth or potential gain. Risk Averse companies or individuals strive to manage risk rather than exploit it, as they believe that taking on risks will be more costly than it’s worth due to the potential for losses. Consequently, they typically choose conservative investments and strategies, and may even seem overly cautious at times.