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Farm Business Management fact sheet: Farm Business Risk Profiles

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A risk profile describes the combination of a business's ability to incur risk and an individual's personal risk attitude... Wary or risk averse individuals tend to avoid taking risks, they choose outcomes that provide safety and security and feel that other options are likely to be fraught with uncertainty and loss... in order to make more effective decisions in risky situations, individuals should: limit reliance on bias-prone assumptions and estimates by conducting research and consulting with experts and knowledgeable individuals; understand factors that influence different reactions to risk; and isolate potential sources of bias, and be aware when these biases are influencing a decision...