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?

A.Risk mitigation
B.Risk tolerance
C.Risk appetite
D.Risk threshold

Answer 1

The best description for the level of risk that, once exceeded, requires immediate action or reconsideration of the initiative is:

**D. Risk threshold.**

A risk threshold is the specific point at which the risk level becomes unacceptable, prompting the need for reassessment or action.