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While, for risks with limited probabilities and/or
impacts, you would be less willing to do so. Dr. Maged Ezzat Georgy Risk Tolerance
Risk tolerance is …
“A measure of the willingness of some person or
some organization to accept or avoid risk”.
Acceptable risks vs. unacceptable risks.
Risk takers vs. risk avoiders. Dr. Maged Ezzat Georgy Very
High High Impact M
X Dr. Maged Ezzat Georgy Risk Response Strategies Strategies…
There are four known strategies to deal with project
◦ Mitigation. Dr. Maged Ezzat Georgy Risk Acceptance
Acceptance of a risk means:
The severity of the risk is low enough (lower
than our tolerance level)
we will do nothing about the risk unless it
Once the risk occurs, we will fix the problem and
Dr. Maged Ezzat Georgy Risk
There are two kinds of risk acceptance:
◦ Passive. Dr. Maged Ezzat Georgy Active vs. Passive Acceptance
Risk acceptance is considered active when:
“we make a plan for...
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This document was uploaded on 01/22/2014.
- Winter '14