After conducting a risk analysis, a company defines the amount of risk it is willing to accept in pursuit of its objectives. Any risk level above this amount will require mitigation. What is this defined level of risk called?
Risk awareness
Residual risk
Risk register
Risk appetite
Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives before any mitigation is needed. Residual risk is the risk that remains after risk treatments are applied. A risk register is a document used to track and manage identified risks. Risk awareness is a general understanding of risk, not a specific, defined threshold.
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