Glossary

Understanding acceptable risk requires a comprehensive assessment of the organization’s risk appetite, regulatory requirements, and business objectives. While some risks may be deemed acceptable due to their low likelihood or potential impact, others may require immediate mitigation strategies to align with organizational goals and compliance standards. Moreover, acceptable risk varies across different industries and sectors, reflecting the unique challenges and priorities of each organization. Therefore, effective risk management involves continuous monitoring and reassessment of acceptable risk thresholds to adapt to evolving threats and business environments.