The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk tolerance heading?
Risk tolerance defines the threshold levels of risk exposure acceptable to different stakeholders. Corporate management's threshold level of risk exposure involves any combination of high and very high impact and probability. This helps set an upper boundary for the amount of risk the corporation is willing to tolerate. Similarly, the Project Board's threshold level of risk exposure includes combinations of medium, high, and very high impact, with high and very high probability. This specifies the degree of risk that the Project Board can accept without necessitating intervention or escalation.
B bcs of the Figure 10.4 Example of a summary risk profile
Agree with others in discussion section. A & B looks reasonable as per Figure 10.4 Example of a summary risk profile
nder the “Risk Tolerance” heading, the two statements that should be recorded are: Statement A: Corporate management’s threshold level of risk exposure is any combination of high and very high impact and probability. This statement defines the risk tolerance level for corporate management, which is crucial for understanding their risk appetite. Statement B: The Project Board’s threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability. This statement outlines the risk tolerance level for the Project Board, which is important for decision-making regarding risk responses. These two statements provide clear definitions related to risk tolerance for different roles within the project, which is essential for effective risk management. Understanding the risk tolerance can help in planning and preparing appropriate responses
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