Risk-averse decision making refers to the tendency of individuals or organizations to prefer options that minimize potential losses rather than maximizing potential gains. This approach often leads to choosing safer alternatives, even if they offer lower rewards. People who are risk-averse prioritize stability and predictability in their choices, which can be particularly important in uncertain environments. In finance, for example, a risk-averse investor might choose bonds over stocks because bonds typically provide more consistent returns with less volatility. This decision-making style can be beneficial in protecting assets but may also limit opportunities for higher returns in the long run.