Risk Tolerance and Risk Neutrality (You Can Live With More Risk than You Think) Many exploration and production companies impose a risk threshold on major capital projects. The key concept of this presentation is that risk tolerance should be applied at the portfolio level, not the project level. The question to ask is not, “Am I comfortable with the risk associated with this project?” Rather, it is, “Am I comfortable with the risk associated with my portfolio of assets when this project is included?” Patrick Leach is the chief executive officer of Decision Strategies. He has 30 years of experience in the energy industry, primarily in upstream oil and gas.