Dave Ingram is a highly respected, award-winning, thought leader in the risk management community. He recently shared with a number of us an article he wrote for The Actuary — and which I find to be excellent.
Dave discusses four different "risk personality types" (my expression). People and organizations tend to fall, he says, into one of these four types, each of which has a different attitude towards taking risks. The article is worth reading just for that.
However, Dave goes on to suggest that different business conditions (such as boom vs. bust) call for different risk attitudes. For example, we should probably take more risks when the economy is doing well than when we are in recession.
At this point, I will let you read the article and, I hope, come back here and share your opinions.