Risk Training - the Neglected Part of Project Management Essay

Risk Training - the Neglected Part of Project Management - Essay Example According to the research findings, it can, therefore, be said that individual level of risk tolerance may be exhibited in almost every aspect of one’s investment. This is because both employers and individuals tend to have different perceptions on risk tolerance. For example, you may view investing $25,000 in the stock market as wise decision depending on your level risk tolerance, while another investor may shun this investment decision because his or her level of risk tolerance may be substantially low as compared to mine. Connectively, if $25,000 represents a considerable fraction of your persons’ income, you may encounter a high-risk factor. On the contrary, if $25,000 constitutes only 10% of the total income, the risk factor will be negligible. Many investors’ view stock market as a risky venture due to volatility and fluctuation of the stock prices as well as the economic conditions. Therefore, such volatility in stock prices may make both individuals vary interims of their levels of risk tolerance. Usually, individuals tend to underestimate or overestimate the severity of inherent risk that may consequently expose them to intolerable risk levels. Therefore, it is vital for individuals to understand inherent risk is an intangible factor and hence apply an appropriate technique to determine their levels of risk tolerance. For instance, questionnaires may be developed to help individuals determine their levels of risk tolerance.There are several factors that influence the levels of risk tolerance some of those factors include; personal health, age and the likelihood of recovering from financial distresses.