Acceptable risk is the level of potential loss, harm, or negative impact that an organization consciously decides to tolerate after implementing security controls and mitigation measures. Since eliminating all cybersecurity risks is typically impractical, economically unfeasible, or operationally disruptive, organizations must determine which residual risks fall within their predefined tolerance thresholds based on thorough risk assessments.

This determination is a critical executive decision informed by evaluating identified threats, system vulnerabilities, potential likelihood and impact of adverse events, regulatory compliance requirements, and cost-benefit analysis of further mitigation efforts. Acceptable risk aligns with an organization's overall risk appetite and strategic objectives, enabling optimal resource allocation and prioritized cybersecurity investments. It requires continuous monitoring and re-evaluation as threat landscapes evolve and business priorities shift.