Financial risk information processing in Hong Kong: An application of the risk information seeking and processing (RISP) model

Links among individual characteristics, risk perception, institutional trust, self-efficacy, informational subjective norms, information insufficiency, channel belief, information gathering capacity, individuals’ processing and further seeking of information are investigated. An application of the Risk Information Seeking and Processing (RISP) model into the context of how the Hong Kong population processes news about an asset bubble shows that systematic processing is positively related to active information seeking. And individuals’ risk perception is correlated with information insufficiency. The findings of this exploratory research show the applicability of the model in explaining individuals’ processing of finance-related information pertinent to their investment choices. Practical implications are given to policy makers in developing strategies for investors’ education.