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Alex
3 years ago
7

You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk

tolerances associated with your project
Business
1 answer:
kap26 [50]3 years ago
8 0

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

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