We make decisions every day that impact us personally and professionally. The most obvious factor of importance is size of the financial commitment, but other issues also should be considered in the financial decision. For example, regardless of size, the harder a decision is to un-do if it turns out to be wrong, the greater the need to analyze the issues beforehand. Similarly, decisions of high risk may need a different approach than decisions of low risk.

1. What does it mean to be a risk-taker or risk-averse?
2. How would you describe yourself in practice?
3. Whichever you think you are, what kinds of situations might make you switch your preference?