diff --git a/apps/web/src/locales/en/messages.json b/apps/web/src/locales/en/messages.json
index 5eab55e230..1f8c4ec55b 100644
--- a/apps/web/src/locales/en/messages.json
+++ b/apps/web/src/locales/en/messages.json
@@ -154,6 +154,15 @@
       }
     }
   },
+  "newPasswordsAtRisk": {
+    "message": "$COUNT$ new passwords at-risk",
+    "placeholders": {
+      "count": {
+        "content": "$1",
+        "example": "5"
+      }
+    }
+  },
   "notifiedMembersWithCount": {
     "message": "Notified members ($COUNT$)",
     "placeholders": {
diff --git a/bitwarden_license/bit-common/src/dirt/reports/risk-insights/services/all-activities.service.ts b/bitwarden_license/bit-common/src/dirt/reports/risk-insights/services/all-activities.service.ts
index ee7f0fae56..4044a01926 100644
--- a/bitwarden_license/bit-common/src/dirt/reports/risk-insights/services/all-activities.service.ts
+++ b/bitwarden_license/bit-common/src/dirt/reports/risk-insights/services/all-activities.service.ts
@@ -76,7 +76,9 @@ export class AllActivitiesService {
   }
 
   setAllAppsReportDetails(applications: ApplicationHealthReportDetailEnriched[]) {
-    const totalAtRiskPasswords = applications.reduce(
+    // Only count at-risk passwords for CRITICAL applications
+    const criticalApps = applications.filter((app) => app.isMarkedAsCritical);
+    const totalAtRiskPasswords = criticalApps.reduce(
       (sum, app) => sum + app.atRiskPasswordCount,
       0,
     );
diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.html b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.html
index 718efc4c67..674bc0b5c6 100644
--- a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.html
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.html
@@ -21,7 +21,11 @@
     </div>
 
     <div class="tw-items-baseline tw-gap-2">
-      <span bitTypography="body2">{{ "countOfAtRiskPasswords" | i18n: atRiskPasswordsCount }}</span>
+      <span bitTypography="body2">{{
+        hasExistingTasks
+          ? ("newPasswordsAtRisk" | i18n: newAtRiskPasswordsCount)
+          : ("countOfAtRiskPasswords" | i18n: atRiskPasswordsCount)
+      }}</span>
     </div>
 
     <div class="tw-mt-4">
diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.ts b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.ts
index 3b8475ed5c..4d2085d7c3 100644
--- a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.ts
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/activity-cards/password-change-metric.component.ts
@@ -9,6 +9,7 @@ import {
   LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
   SecurityTasksApiService,
   TaskMetrics,
+  OrganizationReportSummary,
 } from "@bitwarden/bit-common/dirt/reports/risk-insights";
 import { OrganizationId } from "@bitwarden/common/types/guid";
 import { ButtonModule, ProgressModule, TypographyModule } from "@bitwarden/components";
@@ -73,25 +74,8 @@ export class PasswordChangeMetricComponent implements OnInit {
         this.totalTasks = taskMetrics.totalTasks;
         this.allApplicationsDetails = allApplicationsDetails;
 
-        // No critical apps setup
-        this.renderMode =
-          summary.totalCriticalApplicationCount === 0 ? RenderMode.noCriticalApps : this.renderMode;
-
-        // Critical apps setup with at-risk apps but no tasks
-        this.renderMode =
-          summary.totalCriticalApplicationCount > 0 &&
-          summary.totalCriticalAtRiskApplicationCount >= 0 &&
-          taskMetrics.totalTasks === 0
-            ? RenderMode.criticalAppsWithAtRiskAppsAndNoTasks
-            : this.renderMode;
-
-        // Critical apps setup with at-risk apps and tasks
-        this.renderMode =
-          summary.totalAtRiskApplicationCount > 0 &&
-          summary.totalCriticalAtRiskApplicationCount >= 0 &&
-          taskMetrics.totalTasks > 0
-            ? RenderMode.criticalAppsWithAtRiskAppsAndTasks
-            : this.renderMode;
+        // Determine render mode based on state
+        this.renderMode = this.determineRenderMode(summary, taskMetrics, atRiskPasswordsCount);
 
         this.allActivitiesService.setPasswordChangeProgressMetricHasProgressBar(
           this.renderMode === RenderMode.criticalAppsWithAtRiskAppsAndTasks,
@@ -106,6 +90,38 @@ export class PasswordChangeMetricComponent implements OnInit {
     protected accessIntelligenceSecurityTasksService: AccessIntelligenceSecurityTasksService,
   ) {}
 
+  private determineRenderMode(
+    summary: OrganizationReportSummary,
+    taskMetrics: TaskMetrics,
+    atRiskPasswordsCount: number,
+  ): RenderMode {
+    // State 1: No critical apps setup
+    if (summary.totalCriticalApplicationCount === 0) {
+      return RenderMode.noCriticalApps;
+    }
+
+    // State 2: Critical apps with at-risk passwords but no tasks assigned yet
+    // OR tasks exist but NEW at-risk passwords detected (more at-risk passwords than tasks)
+    if (
+      summary.totalCriticalApplicationCount > 0 &&
+      (taskMetrics.totalTasks === 0 || atRiskPasswordsCount > taskMetrics.totalTasks)
+    ) {
+      return RenderMode.criticalAppsWithAtRiskAppsAndNoTasks;
+    }
+
+    // State 3: Critical apps with at-risk apps and tasks (progress tracking)
+    if (
+      summary.totalCriticalApplicationCount > 0 &&
+      taskMetrics.totalTasks > 0 &&
+      atRiskPasswordsCount <= taskMetrics.totalTasks
+    ) {
+      return RenderMode.criticalAppsWithAtRiskAppsAndTasks;
+    }
+
+    // Default to no critical apps
+    return RenderMode.noCriticalApps;
+  }
+
   get completedPercent(): number {
     if (this.totalTasks === 0) {
       return 0;
@@ -144,7 +160,19 @@ export class PasswordChangeMetricComponent implements OnInit {
   }
 
   get canAssignTasks(): boolean {
-    return this.atRiskAppsCount > this.totalTasks ? true : false;
+    return this.atRiskPasswordsCount > this.totalTasks;
+  }
+
+  get hasExistingTasks(): boolean {
+    return this.totalTasks > 0;
+  }
+
+  get newAtRiskPasswordsCount(): number {
+    // Calculate new at-risk passwords as the difference between current count and tasks created
+    if (this.atRiskPasswordsCount > this.totalTasks) {
+      return this.atRiskPasswordsCount - this.totalTasks;
+    }
+    return 0;
   }
 
   get renderModes() {
diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.spec.ts b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.spec.ts
index 520164c80e..a57bdfc279 100644
--- a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.spec.ts
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.spec.ts
@@ -40,6 +40,7 @@ describe("AccessIntelligenceSecurityTasksService", () => {
       const organizationId = "org-1" as OrganizationId;
       const apps = [
         {
+          isMarkedAsCritical: true,
           atRiskPasswordCount: 1,
           atRiskCipherIds: ["cid1"],
         } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
@@ -56,10 +57,12 @@ describe("AccessIntelligenceSecurityTasksService", () => {
       const organizationId = "org-2" as OrganizationId;
       const apps = [
         {
+          isMarkedAsCritical: true,
           atRiskPasswordCount: 2,
           atRiskCipherIds: ["cid1", "cid2"],
         } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
         {
+          isMarkedAsCritical: true,
           atRiskPasswordCount: 1,
           atRiskCipherIds: ["cid2"],
         } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
@@ -85,6 +88,7 @@ describe("AccessIntelligenceSecurityTasksService", () => {
       const organizationId = "org-3" as OrganizationId;
       const apps = [
         {
+          isMarkedAsCritical: true,
           atRiskPasswordCount: 1,
           atRiskCipherIds: ["cid3"],
         } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
@@ -106,6 +110,7 @@ describe("AccessIntelligenceSecurityTasksService", () => {
       const organizationId = "org-4" as OrganizationId;
       const apps = [
         {
+          isMarkedAsCritical: true,
           atRiskPasswordCount: 0,
           atRiskCipherIds: ["cid4"],
         } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
@@ -115,5 +120,20 @@ describe("AccessIntelligenceSecurityTasksService", () => {
       expect(defaultAdminTaskServiceSpy.bulkCreateTasks).toHaveBeenCalledWith(organizationId, []);
       expect(result).toBe(0);
     });
+
+    it("should not create any tasks for non-critical apps", async () => {
+      const organizationId = "org-5" as OrganizationId;
+      const apps = [
+        {
+          isMarkedAsCritical: false,
+          atRiskPasswordCount: 2,
+          atRiskCipherIds: ["cid5", "cid6"],
+        } as LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher,
+      ];
+      const result = await service.requestPasswordChange(organizationId, apps);
+
+      expect(defaultAdminTaskServiceSpy.bulkCreateTasks).toHaveBeenCalledWith(organizationId, []);
+      expect(result).toBe(0);
+    });
   });
 });
diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.ts b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.ts
index c5610c638b..34fd6daa2b 100644
--- a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.ts
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/shared/security-tasks.service.ts
@@ -33,8 +33,9 @@ export class AccessIntelligenceSecurityTasksService {
     organizationId: OrganizationId,
     apps: LEGACY_ApplicationHealthReportDetailWithCriticalFlagAndCipher[],
   ): Promise<number> {
+    // Only create tasks for CRITICAL applications with at-risk passwords
     const cipherIds = apps
-      .filter((_) => _.atRiskPasswordCount > 0)
+      .filter((_) => _.isMarkedAsCritical && _.atRiskPasswordCount > 0)
       .flatMap((app) => app.atRiskCipherIds);
 
     const distinctCipherIds = Array.from(new Set(cipherIds));