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The correct answer should be B. Risk tolerance is related to the acceptance of the outcomes of a risk should they occur, and having the right resources and controls in place to absorb or “tolerate” the given risk.
The concept of "personal preference" is generally not considered when defining risk tolerance in PRINCE2. The definition of risk tolerance should be based on objective factors related to the project and the organization, rather than personal preferences or biases. Therefore, option D "The amount of risk a Project Board considers acceptable" is not considered when defining risk tolerance.
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