I Wayan Suarjana,I Gst. Bgs. Wiksuana, Ni Luh Putu Wiagustini, Ida Bagus Panji Sedana
Risky financial decisions are very important in the world of management and business because their essence shows the ability to take risks is needed but the process of taking risks without calculation can trigger failure. This study aims to analyze the effect of financial literacy and personality on risky financial decisions mediated by risk tolerance. The research population is all MSMEs in the province of Bali, amounting to 326,009. The research sample in this study amounted to 206 MSMEs taken proportionally in each district or city based on the percentage of the number of each MSME in the district or city to the total MSMEs in the province of Bali. Data analysis in this study using the SEM-PLS analysis method with the help ofsoftwarewarpPLS 7.0. The study found that financial literacy had no effect on risk tolerance but financial literacy had no effect on risky financial decisions, the personality factor of neurocitism had a negative effect on risk tolerance, while extraversion, agreeableness, conscientiousness and openness had no effect on risk tolerance. Personality factors: conscientiousness and openness have a positive effect on risky financial decisions, while extraversion, agreeableness and neurocitism have no effect on risky financial decisions. Risk tolerance has a positive effect on risky financial decisions.