PRINCE2 Foundation — Question 340

Which is NOT considered when defining risk tolerance?

Answer options

• A. A Project Board's attitude towards risk taking
• B. The allocated risk budget
• C. An organization's risk appetite
• D. The amount of risk a Project Board considers acceptable

Correct answer: B

Explanation

The correct answer is B because the allocated risk budget is a financial consideration rather than a measure of risk tolerance. Options A, C, and D all pertain to attitudes and acceptability regarding risk, which are crucial elements in defining risk tolerance.