Explanation
Mitigation is not a category of risk tolerance, but rather a strategy for reducing the probability or impact of a risk. Risk tolerance refers to the degree of uncertainty that a stakeholder is willing to accept in relation to the achievement of the project or solution objectives. According to the BABOK Guide1, there are three categories of risk tolerance associated with the stakeholders: risk-averse, risk-neutral, and risk-seeking. These categories are based on how much risk the stakeholders can tolerate and how they perceive the potential rewards of taking risks.
Risk-averse stakeholders prefer to avoid risks or minimize their exposure. They tend to choose safer options that have lower returns but higher certainty. They may require more analysis and evidence before making decisions or approving requirements.
Risk-neutral stakeholders are indifferent to risks and rewards. They base their decisions on the expected value of the outcomes, regardless of the uncertainty involved. They may accept higher risks if they are compensated by higher returns, or lower risks if they are accompanied by lower returns.
Risk-seeking stakeholders prefer to take risks or maximize their exposure. They tend to choose riskier options that have higher returns but lower certainty. They may be willing to accept lower levels of analysis and evidence before making decisions or approving requirements.
References:
CBAP Handbook, page 6, section 4. Review the Exam Blueprint, under Requirements Analysis and Design Definition, task 5.1: Prioritize Requirements BABOK Guide, page 33, section 4.2.1: Prioritize Requirements Risk Tolerance - Overview, Factors, and Types of Tolerance Applying stakeholder risk tolerance strategies in business