In the context of metrics, thresholds refer to predetermined values or limits used to assess the performance of a metric. These thresholds are typically defined based on specific criteria or objectives and serve as reference points to determine whether the measured value or performance meets, exceeds, or falls below the desired level.

Thresholds use color-coded indicators to signify different levels of performance or status. These colors help users quickly assess metric performance at a glance. While green traditionally signifies the metric is performing well, amber signals caution, and red signifies a critical situation, you can now customize colors for each threshold level to match your organization's monitoring requirements. Risk administrators and Risk managers can define multiple threshold levels and assign unique colors to each level for precise performance monitoring. For example, you can create a metric to monitor the frequency of operational loss events on a monthly basis. Using predefined threshold ranges, you can define when threshold breaches occur, such as when the number of recorded loss events falls between 6 and 10 in a month or exceeds 10 events. Each threshold band can be assigned a unique color to provide visual indicators across dashboards, list pages, and record pages. When the monthly loss event count meets these conditions, the system triggers the configured risk response actions, such as notifying the risk owner or escalating to the operational risk management committee. Thresholds apply only to quantitative metrics, such as the count of realized operational loss events.