Analyzing and managing risks – on the importance of gender differences in risk attitudes

Abstract

Purpose – This paper seeks to show optimal strategies for firms to cope with analysis and management of risks. Design/methodology/approach – Empirical and experimental studies on gender differences in risk analysis and risk management are reported and assessed. Findings – Women appear less sensitive to probabilities and more pessimistic towards gains than men. In risk management, women seem to have a comparative advantage with respect to diversification and communication tasks. Research limitations/implications – Empirical testing of the hypothesis that mixed teams of senior managers optimize risk analysis and management is still missing. Deeper insights into the optimal structure of men's and women's cooperation with respect to risk analysis and management are missing. Practical implications – A well established cooperation of men and women at the senior management level appears recommendable for firms which strive for an optimization of their risk analysis and risk management. Furthermore, such cooperation is desirable with respect to a society's perspective. Originality/value – Identification of gender differences in risk analysis and management are pointed. Such differences matter since analysis and management of risk are decisive issues for firms.