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Introducing Project Risk Management - Planning for Risk Management

4 important questions on Introducing Project Risk Management - Planning for Risk Management

What is key in risk management?

To complete risk management planning in order to manage, plan for, analyze, and react to identified risks successfully.

What is the difference between risk tolerance and risk appetite?

Risk tolerance describes the amount of risk exposure an organization is willing to tolerate in a project. It is known at the start of a project or becomes clear during the project.
Risk appetite describes the organization's willingness to take on risks in anticipation of the rewards the risks will bring.

What do we mean with the utility function?

A person's willingness to accept risk. The time and money cost required to eliminate the chance of failure is in proportion to the stakeholder's tolerance of risk on the project.

Which organizational process asset must the project manager use for risk management?

The organizational risk policies, which can define the activities required to initiate, plan and respond to risk. The project manager must map project risk management activities to these policies.