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How does a person’s risk tolerance affect whether he rates a risk high, medium, or low?

How does a person’s risk tolerance affect whether he rates a risk high, medium, or low?

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Answer #1

How does a person’s risk tolerance affect whether he rates a risk high, medium, or low?

The risk tolerance or risk appetite varies from person to person. A person who has experience and has seen or lived through a project lifecycle understand the impact or consequences of taking risks. Such person will keep the risks minimum. On the other hand, a person with less experience does not understand what the impact or consequencesof this risk is. Such person will be more likely to take risk.A person who is more quality centric might rate not meeting the quality as high risk and not meeting the timeline as medium risk. A person who is more concerned of meeting deadlines at any cost would rate delay as high risk and not meeting quality as a medium risk

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