This research aims to investigate the effect of international tourists’ perceived risk factors on (n = 257) overall risk perceptions and consequently on their behavioural intention (i.e. intention to revisit, to recommend destination and repeat same activities) from the lens of prospect theory. An online survey was circulated to the onsite international tourists who were visiting Bali. We found that human-induced and financial risk have significant effect on overall risk perception, while overall risk perception mediates the relationship between human-induced risk and behavioural intention. Financial risk has significant negative effect on behavioural intention, however, human-induced risk interestingly has significant positive effect on behavioural intention. While international tourists were concerned about the environmental issues in Bali, it does not affect their intention to revisit Bali. This study extends prospect theory in tourism literature and attempt to provide insights for destination marketers to mitigate and manage growing risk perceptions associated with international tourists’ behavioural intention.