Question 16 of 50 Why are risk tolerances and thresholds important to identify i

Question

Question 16 of 50 Why are risk tolerances and thresholds important to identify in the risk management plan? Tolerances and thresholds help to define how often the risk management process will be performed Tolerances and thresholds provide the basis for costing the risk management process as well as defining how risk activities will be recorded Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plarn executiorn Tolerances and thresholds determine what tools and data sources will be used in risk management

Explanation / Answer

Risk tolerances and thresholds are the important degrees of measurement as they measure and define thesensitivity of the organisation to take risk. high tolerance means high degree of acceptance of risk and vice-versa.

Both the risk tolerance and thesholds tells us the effectiveness of the risk in the organisation. THerefore option C is true.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---