Risk Averse
Risk Averse Definition
Risk-averse means having a preference for avoiding risk, leading one to choose options that are perceived as safer or less likely to result in a negative outcome.
Risk Averse Example
A company is negotiating a contract with a new supplier. Despite the potential for higher savings with a less established supplier, the company opts for a more expensive, well-established supplier to minimise the risk of supply chain disruptions, demonstrating risk aversion in their decision-making.
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