Risk is a subjective concept, which is perceived differently by stakeholders based on their education, experience and other unique factors including the culture of organisations and societies to which they belong. A further consideration is the various levels of risk tolerance of stakeholders, and how these tolerances will be balanced when managing projects or day-to-day operations.
Organisations should consider enshrining their position in a risk tolerance or risk position statement.
Some important concepts when considering risk perception and tolerance are:
- Risk Appetite
- Risk Intelligence
- Cognitive Bias
- Voluntary vs Involuntary Risk
The information on this page was drawn primarily from the following sources:
Edited by Nadine Cranenburgh
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