Which is NOT considered when defining risk tolerance?
Which is NOT considered when defining risk tolerance?
When defining risk tolerance, considerations typically include the attitude towards risk-taking, the risk appetite of an organization, and the amount of risk deemed acceptable. The allocated risk budget, however, is more related to financial planning and resource allocation rather than the qualitative assessment of risk tolerance itself.
The correct answer must be D - The amount of risk a Project Board consider acceptable = risk tolerance
NOT...... ans is B
The correct answer should be B. Risk tolerance is related to the acceptance of the outcomes of a risk should they occur, and having the right resources and controls in place to absorb or “tolerate” the given risk.
The concept of "personal preference" is generally not considered when defining risk tolerance in PRINCE2. The definition of risk tolerance should be based on objective factors related to the project and the organization, rather than personal preferences or biases. Therefore, option D "The amount of risk a Project Board considers acceptable" is not considered when defining risk tolerance.
hatachino1: Note that the question is asking "Which is NOT considered when defining risk tolerance". The should be B, The allocated risk budget