A risk-averse individual is someone who prefers to avoid uncertainty and potential losses when making decisions. This person typically chooses safer options, even if they may offer lower returns or benefits. For example, in financial matters, a risk-averse person might prefer investing in government bonds rather than stocks, as bonds are generally considered more stable. Risk aversion can also apply to various aspects of life, such as career choices or personal relationships. A risk-averse individual may avoid taking on new challenges or opportunities that could lead to failure, prioritizing security and predictability over potential rewards.