ABSTRACT
This chapter focuses on understanding and managing risk attitude which takes a clear practitioner perspective, than being academic or theoretical, though the foundation is rigorous and secure. Both power and propinquity are complex factors with a range of contributory influences, but both have advantages of being measurable to a degree, used as proxy measures for underlying drivers. Given the data-gathering challenge, use proxy measures to summarize the collective effects of a range of individual characteristics on the behavior of the group and its risk attitude. Being able to prioritize the effect of different factors on groups would lead to improved understanding of the drivers of group behavior, and may indicate approaches to manage these proactively in order to optimize decision-making performance. In order to improve the management of group risk attitude, decision-making processes and resultant decision outcomes, a deeper understanding is needed of the drivers of group risk attitude as perceived by individual members of decision-making groups.
