Risk-taking behavior

Individual behavior is influenced by organizational processes and values. Peer pressure, values, management style contribute to behavioral risk taking. Understanding the current organizational culture is essential. 

The somewhat controversial theory of risk homeostasis is relevant to a discussion of risk taking. RHT was developed initially in the area of driving behavior (Wilde, 1984). The theory states that accident rates are not determined by actual levels of intrinsic risk but by the levels of risk acceptable to individuals in the situation. The theory implies that people adjust their risk-taking behavior to maintain a constant level of perceived risk. Thus, if improved safety measures are introduced (e.g., better guarding, improved protection systems then individuals will behave in a more risky fashion in order to maintain their accustomed levels of risk. 

Death after the use of MDMA or MDEA is rare but may occur because of induction of cardiac arrhythmias or as a consequence of risk-taking behavior. Following its acute effects, MDMA may produce symptoms such as anxiety, depression, and confusion, which, in some cases, continue for several weeks (Dowling et al. 1987). 

Bauer, R.A. 1960. Consumer behavior as risk taking. In Dynamic Marketing for a Changing World (R.S. Hancock, ed.), pp. 389-398. American Marketing Association, Chicago. 

Kaminsky, Z., Petronis, A., Wang, S.C., Levine, B., Ghaffar, O., Eloden, D. and Eeinstein, A. (2008) Epigenetics of personality traits An illustrative study of identical twins discordant for risk-taking behavior. Twin Research and Human-Genetics, 11, 1-11. 

However, as mentioned in the previous section, the stochastic model takes a decision based on first-stage and expected second-stage costs, and, hence, does not account for the decision-maker risk behavior (risk-averse or risk taker). For this reason, a more realistic approach would consider higher moments where the tradeoff between the mean value and the variations of different scenarios is appropriately reflected. 

Reinforcing with formal mechanisms. Management needs to ensure that roles and relationships, basic management and business processes, reward and recognition systems, and information systems all support and reinforce the requisite mindsets and behaviors. It is close to impossible to convince employees that more risk taking will be a desired behavior in the future, if just one person who then takes a risk and fails is demoted. 

Bromiley, P., and Curley, S. P. (1992), "Individual differences in risk-taking," in ]. F. Yates (ed.), Risk-Taking Behavior, New York Wiley, pp. 87-132. 

Greenberg, M. E, and Weiner, B. B. (1966), "Effects of reinforcement history upon risk-taking behavior," Journal of Experimental Psychology 71,587-92. 

The third aspect of human reliability focuses on situations where humans intentionally engage in risk taking. High-culpability behavior means that the person... 

Don t mix different kinds of substances. And don t mix any substance use with other risk-taking behavior."... 

Speed of developing acquired tolerance Likehhood of experiencing intoxication as pleasme Metabolism of the drug Psychiatric symptoms Prior experiences/expectations Propensity for risk-taking behavior... 

The predominant effects of serotonin are inhibitory. It enhances the action of the GABA, the major inhibitory neurotransmitter. Serotonin has an excitatory effect by increasing the release of dopamine, a neurotransmitter involved in love, sex, and feelings of well being. Reduction in serotonin activity makes people incapable of experiencing normal positive rewards. Dopamine activity is enhanced by alcohol, cocaine, amphetamine, heroin, and risk-taking behavior. 

Yates (1992) and Singleton and Hovden (1987) are useful sources for the reader interested in additional details on risk perception, risk acceptability, and risk-taking behavior. Section 5.1.1 is also relevant to this topic. 

Wagenaar, W. A. (1992), Risk Taking and Accident Causation, in Risk-Taking Behavior, J. F. Yates, Ed., John Wiley Sons, New York, pp. 257-281. 

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