Why is important for the project manager to know risk tolerances of the project stakeholders?
Question:
Answer:
Their risk tolerances are in indication of their willingness to accept project risk. Different stakeholders may have different risk tolerances.
As decisions on the project are made its important for the project manager to know which solutions are likely to meet the risk tolerances of the stakeholders.
Its also important to understand the risk tolerances so you know which project risks require more detailed risk planning and possible mitigation.
It is key to remember what Project Management is... you are only managing a project for someone else. Not only do you need to gather all key facts you also need to know what level of risk the stakeholders are willing to take. You do not want to start down a road that they are unwilling to take or support you in. You are after all their instrument... of course this also means that you will need to introduce ideas that they may not be familiar with, knowing up front what their tolerance is will help you decide how to approach with ideas that may be 'outside' of the box.
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