The term that defines the maximum time period an organization is willing to lose data during a major IT outage event is known as the Recovery Point Objective (RPO). RPO is a critical concept in business continuity and disaster recovery planning. It represents the maximum age of the files that an organization must recover from backup storage for normal operations to resume after a disaster. In other words, it's the maximum amount of data loss an organization can tolerate. For instance, if an RPO is set to one hour, the system must be backed up at least every hour so that in case of a system failure, no more than one hour's worth of data is lost.
References: The explanation provided is based on standard definitions and practices within the field of IT disaster recovery, as outlined in resources like the EC-Council's Certified Network Defender (CND) course and other industry-standard documentation on business continuity and disaster recovery planning.