Risk-taking Propensity Measures

MacCrimmon, K. R., & Wehrung, D. A. (1985). A portfolio of risk measures. Theory and Decision, 19(1), 1-29. doi: 10.1007/BF00134352

	Table of Contents
	Description
	History of Use
	References

Description:

Purpose		The Risk-taking Propensity Measures were designed to assess risk preferences through a variety of approaches, including hypothetical scenarios (Category I), actual behavior (Category II), and self-report questionnaires tapping risk attitude as well as personality traits related to risk preferences (Category III).
Questions		The measures are broken down into 3 categories. Category I: hypothetical, standardized scenarios Risk In-Basket: Assume the role of a hypothetical vice-president facing choices between risky and sure options. Investment Gambles: Choices between 2 hypothetical investments, one sure and one risky. Some gambles are business and some are personal. Risk-Return Rankings: Rank 9 investment alternatives in order of preference. Category II: revealed behavior in naturally-occurring risky situations Risky Assets: Percentage of gross personal assets held in riskiest asset categories. Debt Ratio: Percentage of gross personal assets held as debt. Self-Insured: Ratio of total life insurance to annual salary. Gambling: Total amount wagered in the past year on recreational wagers as a proportion of net wealth. Resignations: Number of times in the past 15 years that a person has voluntarily resigned. Category III: attitudes toward risk (self-report) Self-rating: 1 question assessing self-perceived risk propensity Societal Attitude Questionnaire Sensation seeking: 7 questions selected from Zuckerman et al.'s (1964) original Sensation Seeking Scale (SSS) Ability to control the environment: 7 questions selected from Rotter's (1966) Internal-External Scale (I-E Scale)
Sub-scales		See description above.
Domain
Psychometrics
Sample items		How would you rate your own willingness to undertake risky business propositions as compared to other executives at or near your level in your firm? (Self-rating; Category III)

References:

Scale

MacCrimmon, K. R., & Wehrung, D. A. (1985). A portfolio of risk measures. Theory and Decision, 19(1), 1-29. doi: 10.1007/BF00134352

Uses:

Harrison, J. D., Young, J. M., Butow, P., Salkeld, G., & Solomon, M. J. (2005). Is it worth the risk? A systematic review of instruments that measure risk propensity for use in the health setting. Social Science & Medicine, 60(6), 1385-1396. doi: 10.1016/j.socscimed.2004.07.006

Sitkin, S. B., & Weingart, L. R. (1995). Determinants of risky decision-making behavior: A test of the mediating role of risk perceptions and propensity. Academy of Management Journal, 38(6), 1573-1592. doi:10.2307/256844

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