Financial risk tolerance and its determinants: The perspective of personnel from security services in Ghana

The main objective of this paper is to evaluate the financial risk tolerance of personnel in the various security services in Ghana (i.e., people who serve in the various public security divisions, including the military, immigration, police, customs, firefighting, and prisons). In particular, we examine the predictors and outcomes of financial risk tolerance and further assess whether financial risk tolerance mediates the relationship between the predictor variables and financial behavior. A partial least square structural equation modeling analysis of data collected from a cross-section of security service personnel revealed that financial threat, trust, and deliberative thinking significantly influence financial risk tolerance. We also found that financial risk tolerance is a strong predictor of financial behavior. In addition, financial risk tolerance mediates the relationship between financial threat and trust and financial behavior. The findings in this study are relevant to the leaders of the security services in developing strategies to ensure the financial security of the personnel.