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Question 460 - PRINCE2-7-Foundation discussion

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Which term is defined as the measurable threshold to represent the tolerable range of outcomes for each objective 'at risk'?

A.
Risk tolerance
Answers
A.
Risk tolerance
B.
Risk appetite
Answers
B.
Risk appetite
C.
Risk event
Answers
C.
Risk event
D.
Risk effect
Answers
D.
Risk effect
Suggested answer: A

Explanation:

Risk tolerance is defined as the measurable threshold that represents the tolerable range of outcomes for each objective at risk. It quantifies the level of exposure to risk that an organization or project can withstand, helping to guide risk response planning and risk management strategies.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

asked 23/09/2024
Arun Lailamony
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