Which term describes the specific upper limit of risk exposure that an organization is willing to accept for a given activity, beyond which additional mitigation or other action must be taken?
Risk threshold sets the measurable boundary between acceptable and unacceptable risk. When exposure rises above this threshold, the organization must treat, transfer, avoid, or otherwise address the risk.
Risk appetite is the broad, overall level of risk an organization is willing to pursue or retain.
Risk tolerance defines the amount of variation from objectives that can be absorbed for individual risks.
A key risk indicator (KRI) is a metric that signals increasing or decreasing risk but does not set the boundary itself.
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