ABSTRACT
This chapter explores the human side of risk management, focusing on how people respond to uncertainty and risk, and how this response affects their judgement and behaviour. It is axiomatic to say that the risk management process exists to allow risk to be managed. And management of risk is only achieved by people actually using the results of the risk process to inform and modify their decisions, behaviour and actions. The chapter discusses the subject of risk attitudes and their influence on decision-making in risk management. Another important feature of risk attitude is that it does not just apply to individuals. Similarly, if someone is asked where they should be on the risk attitude spectrum, and whether there is a right attitude in a given situation, there is no single answer. Different risk attitudes are appropriate in different settings, depending on the objectives which are being pursued.
