Definitions (2)

2. Wanting to avoid risk unless adequately compensated for it; the attitude of most investors. For example, if two investments have the same expected return, the one with lower risk will be preferred. A riskier investment has to have a higher expected return in order to provide an incentive for a risk-averse investor to select it.

Use risk-averse in a sentence

He was more risk-averse because he didn't want to go into the cave to see what might be in there.

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You should try to not be to risk-averse because there are times that you may need to take a shot at a big reward.

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My grandmother refuses to invest in the stock market because she is extremely risk-averse and doesn't want lose any of her hard earned money even if it means sacrificing higher returns.

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