Question

A company determines a certain level of risk that, once exceeded, requires immediate action or reconsideration of the initiative. Which of the following best describes this type of measurement?

Answer 1

The type of measurement you are describing is commonly referred to as a "Risk Threshold." A risk threshold is a predefined level of risk that an organization is willing to accept for a particular initiative or project before they take action to mitigate it or reconsider the initiative altogether. When risks exceed this threshold, it prompts a reassessment or immediate action to address the potential consequences.