Not considered when defining risk tolerance

B.

Defining risk tolerance is an essential step in project management to understand how much risk the project team and stakeholders are willing to accept. It helps to determine the risk management approach and identify risks that are unacceptable or tolerable. The following options are generally considered when defining risk tolerance:

A. A Project Board's attitude towards risk-taking: A project board is responsible for overseeing the project and making critical decisions. The board's attitude towards risk-taking influences the risk tolerance level of the project. If the board is risk-averse, they may have a low risk tolerance level and may prefer a conservative approach to risk management.

B. The allocated risk budget: The amount of money allocated to manage risk is an essential factor when defining risk tolerance. The budget determines the level of risk mitigation that can be applied to the project. If the project has a high budget, it may allow for more extensive risk management measures.

C. An organization's risk appetite: An organization's risk appetite is the level of risk it is willing to accept to achieve its objectives. The organization's risk appetite influences the project's risk tolerance level, and it is important to align the project's risk tolerance with the organization's risk appetite.

D. The amount of risk a Project Board considers acceptable: The amount of risk a project board considers acceptable is a critical factor in defining risk tolerance. The board must define the level of risk they are willing to accept to achieve the project's objectives.

Therefore, to answer the question, the option that is NOT considered when defining risk tolerance is "B. The allocated risk budget." As budget is a critical factor that determines the level of risk mitigation that can be applied to the project, it is always considered when defining risk tolerance.