SY0-701 · Question #180
Which of the following describes the maximum allowance of accepted risk?
The correct answer is D. Risk threshold. Risk threshold is the maximum amount of risk that an organization is willing to accept for a given activity or decision. It is also known as risk appetite or risk tolerance. Risk threshold helps an organization to prioritize and allocate resources for risk management. Risk indica
Question
Which of the following describes the maximum allowance of accepted risk?
Options
- ARisk indicator
- BRisk level
- CRisk score
- DRisk threshold
How the community answered
(21 responses)- A5% (1)
- B5% (1)
- D90% (19)
Explanation
Risk threshold is the maximum amount of risk that an organization is willing to accept for a given activity or decision. It is also known as risk appetite or risk tolerance. Risk threshold helps an organization to prioritize and allocate resources for risk management. Risk indicator, risk level, and risk score are different ways of measuring or expressing the likelihood and impact of a risk, but they do not describe the maximum allowance of accepted risk.
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