Managerial risk interpretations: does industry make a difference?

Decision‐making studies incorporating risk have typically used risk measures that are generic across industries. Responding to calls for finer‐grained approaches, a recent study used a qualitative approach to discover how managers interpret risk in different industry contexts. Managers from the oil and gas (61), commercial banking (66), and software development (28) sectors were asked an open‐ended question about their conceptualizations of risk in the context of regularly encountered business situations. Resulting textual data were analyzed using QSR NUD*IST. Industry group membership and risk interpretations were found to be significantly related in that the different industry groups showed different distributions of attention to various aspects of risk. For researchers, these findings suggest the need to use differentiated risk measures. For practitioners, the findings suggest potential benefits from broadening cognitions relating to risk.