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A firm that is threatened by the potential entry of competitors into a market builds excess production capacity. this is an example of a credible threat.
A credible threat is one in which there is a real possibility that the member may soon do serious physical harm to other people (including death), and that possibility cannot be completely eliminated by changing any existing rules, norms, or practices.
A system holding State data or a product delivered by the Consultant that has an exploit that a person with knowledge of information technology security believes may be used to compromise one or more parts of the system constitutes a credible danger.
To learn more about Credible Threat here
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