what is difference between being loss averse and being risk averse?

Answer 1

a risk is something you take actively, a loss happens passively

Answer 2

behavioral definition of loss aversion is proposed and its implications for original and cumulative prospect theory are analyzed. Original prospect theory is in agreement with the new loss aversion condition, and there utility is capturing all effects of loss aversion. In cumulative prospect theory loss aversion is captured by both the weighting functions and the utility function. Further, some restrictions apply for the weighting functions involved in the latter model."


risk averse means

Wanting to avoid risk unless adequately compensated for it; the attitude of most investors. For example, if two investments have the same expected return, the one with lower risk will be preferred. A riskier investment has to have a higher expected return in order to provide an incentive for a risk-averse investor to select it.