"Loss aversion plays a crucial role in how organizations make decisions, often leading to a conservative approach that prioritizes risk avoidance over potential gains".
This also relates to investing where the main driver for big investing firms with a lot of money is risk analysis and the avoidance of losing rather than gaining of money.
Think about a 20% gain in value of your stock holding verses a 20% loss in your stock holding. If its worth $100, then a loss would get you to $80. In order to get back where you started (gain $20 back), you would have to gain 25% of 80 rather than the 20% you had initially. In percentage gain and loss terms, losses are felt way more than gains.
source: https://thedecisionlab.com/biases/loss-aversion