risk aversion
Shunning uncertain outcomes
Risk aversion is the tendency to prefer certainty over uncertainty, even when the uncertain option might yield greater reward.
A risk-averse investor chooses stable bonds over volatile stocks; a risk-averse person takes the guaranteed job offer rather than gambling on the startup.
The concept is central to economics, finance, and decision theory.
Her risk aversion kept her from ever betting more than she could afford to lose.
Careful, wise judgment
- circumspectionCareful consideration of consequences
- warinessCautious distrust
- vigilanceState of keen awareness
- discretionCareful judgment in speech
carefulness · hesitancy · deliberation · playing it safe · hedging bets · due diligence · second-guessing · overcaution
Preventive safety measure
- safeguardsMeasures preventing harm
- backup planAlternative if primary fails
- contingencyUncertain possible event
- fail-safeAutomatic harm prevention mechanism
redundancy · safety margin · buffer · insurance · protective measures · safety net · damage control · firewall
- anxietyPersistent apprehensive distress
- apprehensionNervous anticipation of trouble
- worryTroubled mental state
- insecurityUncertainty about oneself
timidity · overthinking · comfort zone · negativity bias · catastrophizing
Expanding into varied areas
- hedgingNoncommittal maneuvering
- bondsTies that unite
- treasuryStored organizational funds
- annuityPeriodic fixed payment
capital preservation · asset allocation · fixed income · blue-chip stocks · money market · certificate of deposit · savings account · safe haven assets
prudence
Careful, wise judgment
- circumspectionCareful consideration of consequences
- warinessCautious distrust
- vigilanceState of keen awareness
discretion · carefulness · hesitancy · deliberation · playing it safe · hedging bets · due diligence · second-guessing · overcaution · analysis paralysis
precaution
Preventive safety measure
- safeguardsMeasures preventing harm
- backup planAlternative if primary fails
- contingencyUncertain possible event
fail-safe · redundancy · safety margin · buffer · insurance · protective measures · safety net · damage control · firewall · stress testing
fear of failure
- anxietyPersistent apprehensive distress
- apprehensionNervous anticipation of trouble
- worryTroubled mental state
insecurity · timidity · overthinking · comfort zone · negativity bias · catastrophizing
diversification
Expanding into varied areas
annuity · capital preservation · asset allocation · fixed income · blue-chip stocks · money market · certificate of deposit · savings account · safe haven assets · index funds
- Playing it safecaution, prudence, baby steps, waiting, hesitation
- behavioral economicsnudge, anchoring, cognitive bias, heuristics, mental accounting
- safety mindsetcaution, vigilance, awareness, prevention, preparedness
- market sentimentbullish, bearish, bullishness, bearishness, optimism
- Utility Theoryutility function, Bernoulli, expected value, rational choice, diminishing returns
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
risk aversionrecklessness
Careless disregard for danger
boldness · adventurousness · audacity · daring · gambling
risk, risky, avert, risks, aversion, averse, averted, riskiness, averting