Sir, John Kay, in “ Risk, the retail investor and disastrous new rules” (January 20), provided a fascinating analysis of linguistic differences that make it difficult for savers/investors to assess the risk associated with their financial choices. Yet he used the City phrase “risk appetite”, a term that is alien to most individuals as well as to those involved in health and safety.
For savers, it is not a question of appetite (which sounds like something to be encouraged), but rather one of risk tolerance. It’s high time to bridge the gap between the behaviours that are rife in the City (where individuals bear little of the consequences of their choices) and those of savers who have the prospect of decades of potential poverty.
Prof Andrea Sella
Dept of Chemistry,
University College London, UK
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