Risk Management: Tolerance
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When assessing risks, one aspect of risk assessment is how tolerant the organization is to risk. This will likely depend on characteristics of the specific project. For example, a project could be needed to provide functionality by a government regulatory date. This is when a government law or regulation will take effect. Your company may have to have certain functionality in place by that date in order to be in compliance. For this type of project, the organization will likely be less tolerant of risk as it is very important to meet the date to avoid monetary penalties for not being in compliance. For a project to rewrite the company's marketing website, the organization would likely be more tolerant of risk in that case. If the schedule slips on rewriting the website, while it wouldn't be favored it also likely would be acceptable.
Can you think of other examples where a company may be more or less tolerant of risk than others?
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Solution Summary
This solution gives three examples of a company being more or less tolerant of risk than others.
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Less tolerant:
New businesses and start ups are less tolerant.
When a company has invested capital in new ...
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