Why are risk tolerances and thresholds important to identify in the risk management Plan?

• Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution
• Tolerances and thresholds help to define how often the risk management process will be performed
• Tolerances and thresholds determine what tools and data sources will be used in risk management
• Tolerances and thresholds provide the basis for costing the risk management process as well as defining how risk activities will be recorded