Answer: Impact tolerances describe the maximum tolerable level of disruption to an important

## Explanation **Option A** is incorrect because this definition actually describes operational risk, not impact tolerance. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. **Option B** is incorrect because impact tolerances are actually highly relevant to third-party service providers. Organizations need to ensure that their outsourced service providers can meet the same impact tolerance levels, as disruptions at third-party providers can directly affect the organization's operations. **Option C** is the correct answer. Impact tolerance refers to the maximum acceptable level of disruption to important business services that an organization can withstand. It represents the threshold beyond which the disruption would cause unacceptable consequences to the organization, its stakeholders, or the wider market. Impact tolerances are typically expressed in terms of time (e.g., maximum tolerable downtime) and are a key component of business continuity management and operational resilience frameworks. Impact tolerances help organizations: - Set recovery time objectives (RTOs) - Determine appropriate resilience strategies - Prioritize critical business services - Establish clear recovery targets for business continuity planning

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