PASSIVE RISK TAKING IN

THE
INDIAN CONTEXT

Group
Dibya Ranjan Mohanty G18017

Kaushik Deogharia G18022

Prabir Mahato G18030

Rahul Verma G18033

To Begin With…

And we are aware of the fact that our Inactions will have
consequences but we still chose not to take any actions,
So What is the reason behind the same??
Introduction

What is Passive Risk-Taking ?

 Passive Risk-Taking ?

Risk brought on or magnified by inaction

Or
Foregoing an opportunity to act in order to
reduce outcome variance.
Difference between Active & Passive Risks

Sensation Seeking Avoidance

Impulsive Tendencies Procrastination

How this Study is relevant
How this Study is relevant for Group Decision

Not just in Individual capacity but often

we take Passive Risk as a group.

So maybe as an Individual I am not a

Passive Risk taker but in conjunction
with the phenomenon of Group Think I
surrender to the “Inactions”
Passive Risk Taking Study & Survey

To maintain the clarity of the experimental design, We

decided to focus on the individual tendency toward passive
risk taking, and not on the comparison between active and
passive risk-taking attitudes.

The questionnaire which we designed was by keeping in the

mind the sensitivity of Indian people towards Resources,
,Health & Ethical Issues.
Hypothesis and Assumptions

H0= People are passively risk taking and tend to leave things to chance
HA = People are passively risk averse

 Respondents have responded honestly

 Risk behavior factors (like health risk, financial risk, safety risk etc.) carry
equal weightage
Limitations of the Study

 Our sample size consist of 72 respondent , Majority of them belong to

similar demography i.e. Urban Educated Middle Class.

 The Age Variation was also not very significant as mentioned below:
Minimum Age 24
Maximum Age 43
Mean Age 29
Standard Dev 2.9

 Respondents trying to portray their best/ideal self while answering the

survey and not responding as per their actual behavior.
 Methodology
1. Survey 2. Factor Analysis 3. Statistical Inference
Data Summary
Age
Gender
Female
15% Mean 29.3
Median 29
Mode 29
Standard Deviation 2.8
Sample Variance 7.83
Range 19
Minimum 24
Maximum 43
Male
Male Female
85%
 Factor Analysis
Rotated Component Matrixa

Data Quality: 1 2
Component

3 4 5 6
I always wear a seatbelt when sitting in the back seat. .761
I immediately go to the doctor's when something in my body is
.740

1. One non loaded

aching or bothering me.
I buy serious medical insurance when traveling to another
.617
country.

item. I check tolls and prices before calling long distance or

overseas.
I have regular general medical check-ups every one or two
.580

.580
years.

2. No Cross Loading
I drive straight to the auto repair shop when the car makes a
.526
strange noise.
I buy an expensive product (computer, refrigerator) only after
.759
comparing prices in several stores.
I check the credit card bill in detail every month. .749

3. No mono loading
I inquire all about a course before signing up (who is the
.612
lecturer, what are the topics, the assignments etc…)
I back up all important files on the computer, including
.874
documents, pictures or videos.
I install an up to date anti-virus on my computer. .524
I save receipts and warranty documents of major items in an
organized fashion.
I always lock the house door when going to sleep. .820
I change some part in the car (filter, strap, etc..) because the
.575
mechanic said it was old and due to fail.
I buy clothes without trying them on. -.869
I read the fine print on any major document like a lease, an
.555
insurance policy or loan application.
I do not save money regularly. .702
I buy a used car only after taking it to a complete check up in a
.515
licensed auto shop.
I do not say anything when receiving too much change at the
.500
store.
 Analysis

1 Factor analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.631
Bartlett's Test of Sphericity Approx. Chi-Square 299.059
df 171
Sig. .000

2 SL Factors Cronbach’s Alpha

No
1 Health Safety Risk 0.766

2 Financial Risk 0.628

3 Technological 0.527
Risk
4 Property Risk .470
 Results & Analysis

3 SL Factors Mean Value Category

No
1 Health 2.51 Passive Risk
Safety Risk Taking
2 Financial 3.82 Passive Risk
Risk Averse
3 Technologi 3.46 Passive Risk
cal Risk Averse

4 Property 3.81 Passive Risk

Risk Averse
 Conclusion & Way Forward

1 Based on our observations we conclude

that Indians are risk averse on most of
the parameters i.e., finance, technology
and property.

2 And there is much scope in encouraging

Indians to take preventive healthcare, do
periodic health checkups, subscribe to
term life insurance and visit doctors for all
sorts of consultations and not to leave
health related concerns to chance.