risikoscheuer

Risikoscheuer is a German noun used to describe a person who avoids risk. The term is formed from Risiko (risk) and scheuen (to shun). It denotes a risk-averse individual, in contrast to someone who is risikobereit (risk-tolerant).

In psychology and economics, risk aversion refers to a preference for certain outcomes over uncertain ones with higher expected value. A Risikoscheuer tends to favor low-variance options, purchases insurance, and may prefer savings over speculative investments. The degree of risk aversion varies with factors such as wealth, time horizon, and personal experience.

In finance and management, Risikoscheuer behavior can lead to conservative investment strategies, diversification, hedging, and cautious capital allocation. While it protects against large losses, excessive risk aversion can result in missed opportunities, slower growth, and underinvestment, especially in dynamic markets.

Usage notes: In German-language writing, Risikoscheuer is used descriptively for individuals; the adjective risikoscheu is more common in describing behavior. The term is found in psychology, economics, and business journalism, and is related to terms such as Risikobereitschaft and Risikotoleranz.

See also: Risikobereitschaft, Risikotoleranz, Risikoaversion.