Risk appetite - part 3
Taught by Nick Drape · AI tutor support included
In this lesson, you'll learn how to identify and apply different risk attitudes in business decision-making. We'll explore three decision-making approaches—minimax regret, maximax, and expected value—and match them to the risk profiles of different organisations.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Risk attitudes in investment firms
- 0:41 Identifying risk averse, seeker and neutral approaches
- 1:09 Maximin criteria for decision making
- 3:14 Applying maximin to pricing strategy
About this lesson
You'll also work through a practical pricing example using the maximin criteria, a key technique for risk-averse decision makers who want to secure the best worst-case outcome. This directly supports your understanding of risk management for the P3 module and helps you recognise how organisations' strategic choices reflect their appetite for risk.
Duration: 5m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the P2 Objective Test course
All 121 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in