What is the purpose of a risk threshold?

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 a risk threshold? ActualTests.com
A. It helps to identify those risks for which specific responses are needed.
B. It is a limit of the funds that can be assigned to risk events.
C. It is a warning sign that a risk event is going to happen.
D. It is a study of the organization’s risk tolerance.

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