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Q: Why are risk tolerances and thresholds important to identify in the risk management Plan?

  • 1
    Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution
  • 2
    Tolerances and thresholds help to define how often the risk management process will be performed
  • 3
    Tolerances and thresholds determine what tools and data sources will be used in risk management
  • 4
    Tolerances and thresholds provide the basis for costing the risk management process as well as defining how risk activities will be recorded
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Answer : 1. "Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution"
Explanation :

Answer: A) Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution Explanation: Answer B defines the timing that should be addressed in the risk management plan. Answer C defines the methodology that should be identified in a risk management plan. Answer D touches on the budgeting and tracking that should be defined in the risk management plan.

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