Bounded-input bounded-output (BIBO) stability refers to a property of a system where, for every bounded input, the output remains bounded as well. This concept is crucial in evaluating the reliability of systems, ensuring that they respond predictably to various inputs without leading to uncontrolled outputs. BIBO stability is often assessed using tools like Z-transforms, which facilitate the analysis of discrete-time systems by providing insights into system behavior through frequency response and pole-zero placement.