Determinants of managerial risk: Exploring personality and cultural influences

A risk-assessment instrument using 10 business scenarios that varied the ri sk dimensions of outcome uncertainty, personal exposure, outcome potential, and personal expectations was used to test the effects of individual risk preferences on managerial risk propensity among 285 Indian managers in Indi a and Singapore. Additionally, the effects of individual and organizational characteristics on managerial risk preferences were measured. Blockwise re gression analysis revealed that the Following groups of managers were signi ficantly more willing than others to take risks: male managers, managers in India, managers with more modern cultural values, managers working in orga nizations with higher perceived risk willingness, managers with a higher ne ed for achievement, and Type A managers. Individual risk willingness prefer ences were also found to influence managerial beliefs about the perceived r iskiness of risk-related decisions.