Risk propensity is defined as a manager's willingness to gamble when making a decision.

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Risk propensity refers to the degree to which a manager is willing to take risks when making decisions. It is a personal characteristic and can vary from one manager to another. High risk propensity managers are more likely to take risks and make decisions that have the potential for higher rewards, but also higher losses. Low risk propensity managers, on the other hand, are more cautious and tend to avoid risks.

Risk Propensity Is Defined as a Manager's Willingness to Gamble