Risk Tolerance

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  Risk tolerance is the degree of risk or uncertainty that is acceptable to an organization.  It can also be defined as the level of risk that you are willing to accept in pursuit of strategic goals and objectives.

  It is important for you to be aware that risk tolerance is often more or less volatile based on the nature of business you are engaged in.   For example, a jetliner may be much less tolerant than a computer software company.   Organizations that posses more resources, tools and risk management skills are much more likely to withstand high risk situations.  Your risk tolerance will also correlate with resources, culture, tools, and leadership.  Some organizations for example, may take more risk while others prefer less risk.

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