Kim’s organization has assessed the risk of floods that may impact their datacenter and has determined that the likely rate of occurrence and its cost if it does occur are not acceptable. Given this, the organization has opted to move their datacenter in the next year. What has occurred?

An organization’s risk threshold is the level where they will switch from accepting a risk to seeking to handle the risk. In this case, the risk has surpassed the organization’s risk threshold, resulting in a plan to avoid the risk. The risk did not drop below the threshold, the risk assessment was successful in helping the organization identify a concern, and no con- trols failed.