Episode 14 — Appetite, Tolerance, and Thresholds
The trio of appetite, tolerance, and thresholds lies at the heart of risk strategy, so this episode explains them in precise, exam-ready language. Appetite expresses how much uncertainty the organization is willing to pursue for benefit, tolerance sets the accepted variation from objectives, and thresholds define the measurable points that trigger action. The PMI-RMP exam frequently tests whether you can align these concepts with governance behavior, such as when a variance exceeds a set threshold or when escalation rules differ across cost, schedule, and quality parameters.
We reinforce comprehension with examples: a construction firm’s tolerance for weather delays versus its zero-tolerance for safety incidents, or an IT program’s higher appetite for innovation risks but tight thresholds on customer downtime. Best practices include documenting thresholds as numeric or categorical values linked to early warning indicators. Troubleshooting guidance covers missing appetite statements, conflicting tolerance levels across stakeholders, and evolving thresholds as projects mature. Understanding how to measure and communicate these boundaries ensures decisions stay defensible and aligned with organizational goals—precisely what the exam evaluates. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your educational path. Also, if you want to stay up to date with the latest news, visit DailyCyber.News for a newsletter you can use, and a daily podcast you can commute with.
