Which of the following describes the maximum allowance of accepted risk?
Choose an answer
Tap an option to check your answer.
Correct answer: Risk threshold.
Why this is the answer
A risk threshold defines the maximum acceptable level of risk an organization is willing to tolerate. Exceeding this threshold triggers specific actions or controls to mitigate the risk. It's a critical component of risk management, establishing boundaries for acceptable exposure. Risk indicator is a metric used to monitor the status of a risk, not its maximum allowance. Risk level is the current assessed severity of a risk, which may or may not be acceptable. Risk score is a numerical value assigned to a risk based on its likelihood and impact, but it doesn't inherently define the acceptable limit.
Pass your exam — without the endless answer hunt
Get every verified question and explanation for this exam in one place, and save hours of prep. 1,000+ certifications · 20+ languages · free to start.
Pass your exam faster → No card needed