Risk attitude is a disposition toward uncertainty, adopted explicitly or implicitly by individuals and groups, driven by perception, and evidenced by observable behaviour.
The correct answer is B:
Risk attitude is a disposition toward uncertainty, adopted explicitly or implicitly by individuals and groups, driven by perception, and evidenced by observable behaviour. Risk attitude represents an organization’s approach to assessing and eventually pursuing, retaining, taking, or turning away from risk. Risk attitudes can range from risk averse to risk seeking. The Reference is the Standard for Risk Management in Portfolios, Programs, and Projects, Page#8
The Situational factors of risk attitude :-
1-Level of relevant skills, knowledge, or expertise. 2- Perception of probability or frequency of occurrence. 3- Perception of impact magnitude, either severity of negative threats or size of positive opportunities. 4- Degree of perceived control or choice in the situation, Manageability is a key assessment of risk, and will influence the preferred risk attitude. 5- Closeness of the risk in time. 6- Potential for direct consequences.
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