risk-averse

IPA/ˈrɪsk əvɜːs/
IPA/ˈrɪsk əvɜːrs/

risk-averse — adjective

1. describes a person, group, or organization that prefers to avoid possible losses

1.adjectiveB2
Definition

describes a person, group, or organization that prefers to avoid possible losses or dangers rather than take chances, even if taking risks could lead to positive results.

Example

Retirement funds are often invested in a risk-averse manner, focusing on bonds rather than stocks.

collocation: risk-averse manner

Abigail chose a city government job because she is too risk-averse to join a startup.

too risk-averse + to-infinitive

Common collocations
  • risk-averse investor
  • risk-averse culture
  • risk-averse approach
  • risk-averse strategy
  • risk-averse manner
Synonyms
  • cautious

    more general and everyday; describes a personality trait in any situation

  • prudent

    more formal; stresses wisdom and good judgment, not just fear of loss

  • conservative

    used in financial contexts; may also carry ideological or stylistic meanings

Antonyms
  • risk-seeking

    describes someone who actively looks for chances to take risks

  • reckless

    more extreme; suggests ignoring danger rather than simply accepting it

Usage Note

Often used in financial and business contexts. Commonly modifies nouns such as 'investor', 'approach', 'strategy', or 'culture'.

Common Mistakes

I am too risk-averse to eat spicy food.
I am too cautious to eat spicy food.
'risk-averse' usually describes decisions about financial loss or danger, not general personal preferences.

Word family

  • risk
    nounB1
  • risk
    verbB2
  • risky
    adjectiveB2
  • risk-aversion
    nounC1
  • riskiness
    nounC1

Synonym discussion

Sense: adjective/1

All four words describe a tendency to avoid danger or loss, but they differ in context and connotation. 'Risk-averse' is the most specific, used mainly in financial and strategic decisions — a risk-averse investor picks bonds over stocks. 'Cautious' is broader and more everyday ('a cautious driver'). 'Prudent' adds a sense of wisdom and forward thinking ('prudent to save for emergencies'). 'Conservative' carries ideological or stylistic overtones, though in finance it may overlap with risk-averse. 'Careful' is the most general, applying to any situation where attention prevents mistakes ('a careful reader'). A cautious person may still try new things carefully, while a risk-averse person prefers to avoid unknown outcomes altogether.

cautious ↗prudent ↗conservative ↗careful ↗

Common collocations

Nouns

Adverbs

  • highly risk-averse
  • extremely risk-averse
  • increasingly risk-averse

Phrases

  • risk-averse behavior
  • risk-averse decision-making

Etymology

ItalianLatinEnglish

A compound formed from 'risk' and 'averse'. 'Risk' entered English in the 1600s from Italian 'risco' (later 'rischio'), meaning danger or hazard. 'Averse' comes from Latin 'aversus', the past participle of 'avertere' — to turn away from. The combination 'risk-averse' became widespread in economics and finance during the mid-1900s to describe investors and decision-makers who prefer safety over potential gain.