KRI thresholds translate risk appetite into operational parameters, establishing green, amber, and red zones that prompt escalation, investigation, or immediate intervention. Thresholds are calibrated using historical data, risk appetite statements, and expert judgment. Breach protocols specify required responses and accountabilities. A manufacturing company sets KRI thresholds for safety including a green zone below 0.5 recordable incidents per 100 workers, amber between 0.5-1.0 requiring investigation, and red above 1.0 mandating production halt, safety stand-down, and executive notification, with thresholds reviewed quarterly.