Abstract
The effects of managerial mood on situational risk perceptions were tested among 85 managers from a variety of organizations, industries, and positions in Singapore. A risk-assessment scenario was developed that systematically varied the risk dimensions of outcome uncertainty, potential gains and losses, situational framing, and personal expectations. Negative, neutral, and positive moods were induced by having managers recall and describe work events. As affective state became more positive, managers perceived situational framing as more positive, and their beliefs that they could influence risky outcomes increased. Additionally, positive affect increased the likelihood that people who perceived situations as risky would select riskier courses of action.
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