Previous studies of risk-taking suggest there are significant variations across individuals' willingness to take financial risk within the organisational context. For example, a decision maker's propensity to take risk may be more aligned with his unique planning horizon. Previous research also suggests that division and lower level managers are typically more risk averse than top managers in the organisation. In this case study we investigate differences in risk propensity across managerial and functional designations in a major oil company, BP Exploration, Inc. We present a model for measuring risk propensity, examine the results of a survey of 39 staff and supervisory personnel, and explore the implications of a divergence between individual risk propensities and the firm's corporate risk policy.
Disclaimer: This journal is hosted by the Stellenbosch University Library and Information Service on request of the journal owner/editor. The Stellenbosch University Library and Information Service takes no responsibility for the content published within this journal, and disclaim all liability arising out of the use of or inability to use the information contained herein. We assume no responsibility, and shall not be liable for any breaches of agreement with other publishers/hosts.