Development of Risk Tolerance Approach to Project Management

This research looks at one part of risk management that is named as risk tolerance considering it in the context of project management and project portfolio management. Consequently, the purpose of the study is to identify main patterns in risk tolerance approach and suggest possible ways to apply it in project management and project portfolio management. The author summarizes the key ideas about risk management, risk tolerance and its application in project management. The paper consists of three main parts. The concept of risk tolerance is often underestimated by managers. There are different perspectives of this topic in risk management because it can be part of project management or purposely incorporated into the operational management. The paper considers mostly Russian companies as a basis for the survey. The author uses the research methodology that is based on the questionnaires together with structured interviews which help to get an access to some specific data. Main outcomes of the research are mostly connected with the usage of risk tolerance and its application in the context of enterprise risk management, project management and project portfolio management. We look at Russian companies and investigate whether they use risk tolerance or not and try to identify possible ways of establishing risk tolerance in companies. Other researchers can use the study as a basis and summarization in risk tolerance approach and try to adapt it in future in practice creating new models and getting in some details for practical usage in the context of projects. Also, it can help to understand and communicate risk tolerance and risk appetite better making it an important part of risk management in companies, project risk management or project portfolio management.