Enterprise risk & controls · Working

Risk threshold

Also called: risk trigger

ELI5

A level that triggers escalation, action or review.

Used in conversation

“The board will ask what happens if risk threshold moves outside tolerance.”

Pitch context

You will see “Risk threshold” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.