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You are the project manager of the NKJ Project for your company. The project's success or failure will have a significant impact on your organization's profitability for the coming year. Management has asked you to identify the risk events and communicate the event's probability and impact as early as possible in the project. Management wants to avoid risk events and needs to analyze the cost-benefits of each risk event in this project. What term is assigned to the low-level of stakeholder tolerance in this project?
A. Risk-reward mentality
B. Mitigation-ready project management
C. Risk utility function
D. Risk avoidance
Answer: C
Risk utility function is assigned to the low-level of stakeholder tolerance in this project.
The risk utility function describes a person's or organization's willingness to accept risk. It is synonymous with stakeholder tolerance to risk.
Risk utility function facilitates the selection and acceptance of risk and provides opportunity to merge the approach with setting thresholds of risk acceptability and using utility-risk ratios if necessary.
Incorrect Answers:
A: This is not a valid project management and risk management term.
B: Risk avoidance is a risk response to avoid negative risk events.
D: Risk-reward describes the balance between accepting risks and the expected reward for the risk event.
Risk-reward mentality is not a valid project management term.

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Corporate headquarters provided your office a portion of their class B subnet to use at a new office location.
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