Risk Perception Index
Measuring how individuals in different countries perceive financial risks, tolerate uncertainty, and respond to economic shocks — and why those perceptions differ so dramatically across borders.
About the Index
A composite measure of financial risk perception
The FiscalSignals Risk Perception Index (RPI) is a composite score derived from survey responses across four dimensions: loss aversion, uncertainty tolerance, cross-border investment anxiety, and behavioral response to economic downturns.
The index is scaled from 0 to 100, where higher scores indicate greater perceived financial risk and lower risk tolerance. It is not a measure of actual financial risk in any country — only of how risk is psychologically experienced by survey participants.
The index is recalculated annually using data from our standardized household survey, ensuring year-on-year comparability. It does not constitute financial advice and should not be used to make investment decisions.
2024 Index
Risk Perception Index scores by country
Selected country scores from the 2024 wave. Higher scores indicate higher perceived financial risk and lower tolerance for financial uncertainty among participants.
Source: FiscalSignals Risk Perception Survey, Wave 7 (2024). Index scores represent composite weighted averages across four dimensions. These figures are for informational and educational purposes only and do not constitute investment advice.
Index Construction
Four dimensions of risk perception
The RPI combines four distinct psychological and behavioral dimensions, each weighted equally in the composite score.
Measures the degree to which survey participants weigh potential losses more heavily than equivalent potential gains. High loss aversion correlates with avoidance of equity markets and preference for cash savings, even in low-inflation environments.
Assesses comfort with financial ambiguity — including variable income, lack of price predictability, and opaque investment outcomes. Populations with higher uncertainty tolerance show greater willingness to hold diversified financial assets.
Captures reluctance to hold assets in foreign currencies, companies, or geographies. This dimension is strongly shaped by historical experience of currency crises, hyperinflation, and political instability.
Examines what survey participants report they would do — or have done — in response to an economic downturn: withdraw savings, reduce spending, sell assets, or hold position. Behavioral responses reveal practical risk management strategies.
What We Have Found
History shapes risk perception more than any other factor
Populations that have experienced severe inflation, banking crises, or currency collapses within living memory consistently score higher on the Risk Perception Index — even decades after the event. This historical imprint on collective financial psychology is one of our most robust findings.
Institutional trust is the second strongest driver. In countries with credible central banks, strong deposit guarantee schemes, and transparent regulatory frameworks, risk perception scores are consistently lower — independent of actual macroeconomic conditions.
Understanding the Index