CAPM (Certified Associate in Project Management) Practice Exam

What defines a risk threshold?

1. The new risk introduced by implementing a risk response

2. The process of planning risk management

3. Degree of risk tolerance

4. Level of uncertainty or impact at which risk becomes unacceptable

The correct answer is: Level of uncertainty or impact at which risk becomes unacceptable

A risk threshold is defined as the level of uncertainty or impact at which risk becomes unacceptable. This means that the risk has reached a point where it is no longer tolerable or manageable by the organization. B and C are incorrect because they do not specifically address the threshold at which risk becomes unacceptable. A is incorrect because although implementing a risk response may introduce new risks, it does not define the threshold. The correct answer, D, specifically addresses the level at which risk becomes unacceptable, making it the best choice.