What is a risk threshold?

Risk threshold — this is the established level of risk that an organization or project is willing to accept without the need to take additional measures.

If the assessed risk exceeds this threshold, it is necessary to develop and implement risk mitigation, corrective, or preventive plans.

The risk threshold helps manage risks by focusing attention on the most critical ones and not wasting resources on minor threats.

For example, if financial risk exceeds 5% of the project budget, this is considered a threshold breach, and measures should be taken to reduce the risk.