View source for Risk Perceived

Risk Perceived is the risk a person sees in a course of action being considered - how risky the action feels to them.

Risk perceptions can change, sometimes dramatically, and these changes may not be rational. When investment markets are booming people tend to under-estimate the level of risk and when markets are falling people tend to over-estimate the risk - though, objectively, booming markets are usually riskier than falling markets.

Other risk-related constructs include [[Risk Tolerance]], [[Risk Capacity]] and [[Risk Required]]. See [[Balancing Risk]] about how to deal with all four risk constructs. 

<page under construction>