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PurposeInvestor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic factors that influence risk perception. It also unravels the complex relationship between demographic attributes and investor's risk attitude towards equity investment.Design/methodology/approachExploratory factor analysis is used to identify factors that define investor risk perception. Multiple regression is used to assess the relationship between demographic traits and factor groups. Kruskal–Wallis test is used to ascertain whether the factors extracted differ across demographic categories. A risk perception framework based on these findings is developed to provide deeper insight.FindingsThere is evidence of the relationship and influence of demographic factors on risk propensity and behavioural bias. From this study, it is apparent that return expectation, time horizon and loss aversion, which define the risk propensity construct, vary significantly based on demographic traits. Familiarity, overconfidence, anchoring and experiential biases which define the behavioural bias construct differ across demographic categories. These factors influence the risk perception of an individual with respect to equity investments.Research limitations/implicationsThe reference for the framework of this study is limited as there has been no precedence of similar work in academia.Practical implicationsThis paper establishes that information seekers make rational decisions. The paper iterates the need for portfolio managers to develop and align investment strategies after evaluation of investors' risk by including these behavioural factors, this can particularly be advantageous during extreme volatility in markets that concedes the possibility of irrational decision making.Social implicationsThis study highlights that regulators need to acknowledge the investor's affective, cognitive and demographic impact on equity markets and align risk control measures that are conducive to market evolution. It also creates awareness among market participants that psychological factors and behavioural biases can have an impact on investment decisions.Originality/valueThis is the only study that looks at a three-dimensional perspective of the investor risk perception framework. The study presents the relationship between risk propensity, behavioural bias and demographic factors in the backdrop of “information” being the mediating variable. This paper covers five characteristics of risk propensity and eight behavioural biases, such a vast coverage has not been attempted within the academic realm earlier with the aforesaid perspective.

Innovation in education is important for developing the next generation of business leaders who also have to be innovators, creative thinkers and managers who will be more responsible towards society. The role of a company is to serve other stakeholders such as staff, clients, suppliers and society besides increasing the wealth of shareholders. In an era of continuous erosion of natural resources due to the progress of mankind, doing business following the path of conscious capitalism may create a competitive edge. The challenge is to orient the mindset of management students to mold them as conscious leaders. In 2009, Dr. Raj Sisodia and Conscious Capitalism Inc. asked Dr. Ernie Cadotte to create a new simulation to illustrate and reinforce the key tenets of the Conscious Capitalism movement. Business managers have a broad variety of conflicting issues to deal with, including product sustainability and reliability, environmental concerns, employee morale and corporate responsibility. The challenge for Cadotte and Sisodia was to develop a new pedagogy for learning to manage a full-enterprise business while addressing the conscious opportunities, situations and problems. In 2011, Cadotte created a game ( Conscious Capitalism in the Marketplace) that simulates the challenges a business manager has to face in today’s world. It is a ‘unique pedagogy’ and an innovative teaching practice that works on the ‘learning-by-doing’ method. This article will be an evidence-based case study of that simulation and its use with the next-generation managers.

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