What is Risk Tolerance? Project Management in Under 5

The video tutorial explains risk tolerance, also known as risk appetite, as the level of risk an organization is willing to accept in its projects. It highlights the importance of understanding risk as uncertainty that can impact project outcomes and how it is visually represented on a graph. The tutorial discusses the boundaries of risk tolerance and the need for organizations to balance caution with innovation. It also emphasizes the importance of adopting different strategic risk postures for various projects, depending on their potential benefits and risks.

Discuss the implications of having a low risk tolerance for core projects.

What factors should be considered when setting risk tolerance levels for projects?