For a multi-million-dollar project with numerous risks, understanding the stakeholders' risk thresholds based on their risk appetites is crucial. This helps in defining the boundaries within which the project can operate and determine acceptable levels of risk. By confirming these thresholds, the risk management team can ensure that the project remains aligned with stakeholders' expectations and that appropriate risk responses are developed. This is a key step in the risk management process as per PMI guidelines, which emphasize the importance of aligning risk management efforts with stakeholders' risk tolerance and appetite.