Mike is the project manager of the NNP Project for his organization. He is working with his project
team to plan the risk responses for the NNP Project. Mike would like the project team to work
together on establishing risk thresholds in the project. What is the purpose of establishing risk
threshold?

A.
It is a study of the organization’s risk tolerance.

B.
It is a warning sign that a risk event is going to happen.

C.
It is a limit of the funds that can be assigned to risk events.

D.
It helps to identify those risks for which specific responses are needed.

Explanation:

Risk threshold helps to identify those risks for which specific responses are needed.