Taking Risks

Kenneth R. MacCrimmon is Earle Douglas McPhee Professor of Management, Faculty of Commerce and Business Administration, the University of British Columbia. The former J.L. Kellogg Distinguished Professor of Strategy and Decision at Northwestern University, he is internationally known for his work on decision making, risk taking, and strategic management.

This seminal work reveals how age, education, income, industry, firm size, and other factors affect a manager's willingness to take risks.

ContentsPrefaceAcknowledgmentsPart One: INTRODUCTIONChapter 1 Essence of RiskIntroductionRisky SituationsRisk BehaviorRisk Takers and Risk AvertersPreview of the BookChapter 2 Studying RiskIntroductionOther Studies of RiskOur Study of RiskPart Two: RISK IN STANDARDIZED SITUATIONSChapter 3 Risk In-Basket: Adjusting Risky Business SituationsIntroductionOur StudyResearch FindingsConclusionsChapter 4 Investment Gambles: Choosing in Risky Personal and Business SituationsIntroductionOur StudyResearch FindingsConclusionsChapter 5 Risk-Return Rankings: Evaluating Risky Attributes of Personal InvestmentsIntroductionOur StudyResearch FindingsConclusionsChapter 6 Real Money Wagers: Evaluating Gambles with Common Risk ComponentsIntroductionOur StudyResearch FindingsConclusionsChapter 7 Managerial Summary and Implications: Studying Risk in Standardized SituationsIntroductionRisk Recognition and EvaluationRisk AdjustmentRisky ChoicePart Three: RELATIONSHIPS AMONG RISK MEASURESChapter 8 Comparison of Risk Measures in Standardized SituationsIntroductionMeasures of Risk PropersityResearch FindingsConclusionsChapter 9 Measuring Risk in Natural Situations and AttitudesIntroductionNatural SituationsAttitudesNatural Situations and AttitudesConclusionsChapter 10 Characteristics Related to RiskIntroductionRisk and Personal CharacteristicsRisk and Financial CharacteristicsRisk and Business CharacteristicsRisk and SuccessThe Consistent Risk Averters and the Consistent Risk TakersConclusionsChapter 11 Managerial Summary and Implications: Relationships among Risk Measures and CharacteristicsIntroductionRisk Taking and Risk AvertingCharacteristics Related to RiskPart Four: ASSESSING YOUR OWN WILLINGNESS TO TAKE RISKSChapter 12 Assessing Your Own Willingness to Take RisksIntroductionComparing Your Willingness to Take Risks with the Risk-Neutral ResponsesComparing Your Willingness to Take Risks with the Managers in the StudyUses of Risk Portfolios and Risk ProfilesOrganizational Risk Profile for a FirmIndividual Risk ProfilesSummaryAppendix: Questionnaires in the Risk PortfolioNotesReferencesIndex