Taking Risks: The Management of Uncertainty »

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.

Library Journal

This work represents the results of a series of in-depth studies begun in 1972 of over 500 top-level American and Canadian managers' responses to standardized risk situations. The process is so well documented that the work is valuable for this alone. The findings on managers' risk-taking responses are presented in a clear and organized fashion; among them are: that successful managers take more risks than others, that managers of small companies are more likely than those of large firms to take risks, and that more education does not result in less risk taking. The references/bibliography section is extensive. Recommended for most academic management collections. Michael D. Kathman, St. John's Univ. Lib., Col lege ville, Minn.

Contents

Preface

Acknowledgments

Part One: INTRODUCTION

Chapter 1 Essence of Risk

Introduction

Risky Situations

Risk Behavior

Risk Takers and Risk Averters

Preview of the Book

Chapter 2 Studying Risk

Introduction

Other Studies of Risk

Our Study of Risk

Part Two: RISK IN STANDARDIZED SITUATIONS

Chapter 3 Risk In-Basket: Adjusting Risky Business Situations

Introduction

Our Study

Research Findings

Conclusions

Chapter 4 Investment Gambles: Choosing in Risky Personal and Business Situations

Introduction

Our Study

Research Findings

Conclusions

Chapter 5 Risk-Return Rankings: Evaluating Risky Attributes of Personal Investments

Introduction

Our Study

Research Findings

Conclusions

Chapter 6 Real Money Wagers: Evaluating Gambles with Common Risk Components

Introduction

Our Study

Research Findings

Conclusions

Chapter 7 Managerial Summary and Implications: Studying Risk in Standardized Situations

Introduction

Risk Recognition and Evaluation

Risk Adjustment

Risky Choice

Part Three: RELATIONSHIPS AMONG RISK MEASURES

Chapter 8 Comparison of Risk Measures in Standardized Situations

Introduction

Measures of Risk Propersity

Research Findings

Conclusions

Chapter 9 Measuring Risk in Natural Situations and Attitudes

Introduction

Natural Situations

Attitudes

Natural Situations and Attitudes

Conclusions

Chapter 10 Characteristics Related to Risk

Introduction

Risk and Personal Characteristics

Risk and FinancialCharacteristics

Risk and Business Characteristics

Risk and Success

The Consistent Risk Averters and the Consistent Risk Takers

Conclusions

Chapter 11 Managerial Summary and Implications: Relationships among Risk Measures and Characteristics

Introduction

Risk Taking and Risk Averting

Characteristics Related to Risk

Part Four: ASSESSING YOUR OWN WILLINGNESS TO TAKE RISKS

Chapter 12 Assessing Your Own Willingness to Take Risks

Introduction

Comparing Your Willingness to Take Risks with the Risk-Neutral Responses

Comparing Your Willingness to Take Risks with the Managers in the Study

Uses of Risk Portfolios and Risk Profiles

Organizational Risk Profile for a Firm

Individual Risk Profiles

Summary

Appendix: Questionnaires in the Risk Portfolio

Notes

References

Index