Risk Perception

WHAT MAKES SOME RISKS MORE ATTRACTIVE THAN OTHERS?

The following factors influence perceived risk:

  1. Voluntary risks are accepted more readily than imposed risks
  2. Risks under individual control are accepted more readily than those under government control.
  3. Risks that seem fair are more acceptable than unfair.
  4. Risk information that comes from trustworthy sources is more readily believed than information from untrustworthy sources.
  5. Risks that seem ethically objectionable will seem more risky
  6. Natural risks seem more acceptable than artificial risks.
  7. Exotic risks seem more risky than familiar risks.
  8. Risks that are associated with other memorable events are considered more risky.

RECOMMENDED READING:

Deloitte and SIA recently published this excellent paper based on research and case studies to examine the factors that shape our perception and tolerance of risk, explore the link between risk perception and safe behaviour and discusses the practical applications and suggests initiatives and possible solutions that organisations can adopt to control risky behaviour: DOWNLOAD HERE: [Download not found]

Another great article from Jim Whiting, heavy reading but explains why some individuals are more averse to risk taking than others: DOWNLOAD HERE: [Download not found]

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