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Risk Tolerance

What is Risk Tolerance?

The acceptable level of variation an organisation is willing to tolerate around specific risk objectives. Risk tolerance provides specific, measurable thresholds that translate the broader risk appetite into operational guidance.

Risk Management

Each of these is named in at least one of the same controls as risk tolerance. The number is how many controls name both.

What the standards actually require on risk tolerance

Requirements naming risk tolerance across 6 standards, quoted from the control text.

Organizational risk tolerances are determined and documented. Tolerance is written down at a level that lets someone decide whether a measured risk is acceptable, and it is traceable to an authority that can set it.

AIRMF-MP-1.5 · Organizational risk tolerances are determined and documented →
API 11644 controls

The plan must require that enterprise risk tolerance is taken into account when the IAC risk management strategy records the IAC risk tolerance, that IAC risk tolerance is approved by defined stakeholders, and that tolerance is specified for Baseline Profile s...

api-1164::ID.RM-2 · ID.RM-2 Risk tolerance documented, approved and set per profile →

Requirement 0036 (Part Two: Risk, section 5.1 Security Risk Management; applies to All entities; dated 31 October 2024; retained from Release 2025): The Accountable Authority determines their entity's tolerance for security risks and documents in the security...

protective-security-policy-framework-pspf-release-2026::0036 · 0036 Determine and document security risk tolerance →

Organizational risk tolerance is determined and clearly expressed. IDENTIFY (ID) Function, Risk Management Strategy (ID.RM) Category. Outcome in the Framework Core of Version 1.0; unchanged in Version 1.1.

nist-cybersecurity-framework-1-0::ID.RM-2 · ID.RM-2: Organizational risk tolerance is determined and clearly expressed →

Organizational risk tolerance is determined and clearly expressed. IDENTIFY (ID) Function, Risk Management Strategy (ID.RM) Category. Outcome in the Framework Core of Version 1.1; withdrawn in CSF 2.0 (incorporated into GV.RM-02, GV.RM-04).

nist-cybersecurity-framework-1-1::ID.RM-2 · ID.RM-2: Organizational risk tolerance is determined and clearly expressed →

The rule lists what makes up the profile: how old the customer is, what else they hold, their financial position and needs, their tax position, what they are trying to achieve, how experienced they are, how long they can invest, how much liquidity they need, h...

finra-rule-2111-suitability-united-states::2111a-profile · Collect and analyse the customer investment profile: age, other investments, financial situation, tax status, objectives, experience, horizon, liquidity, risk tolerance →

Questions people ask about risk tolerance

What is Risk Tolerance?
The acceptable level of variation an organisation is willing to tolerate around specific risk objectives. Risk tolerance provides specific, measurable thresholds that translate the broader risk appetite into operational guidance.
Why is Risk Tolerance important for compliance?
Risk Tolerance is a key concept in Risk Management. Understanding risk tolerance helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 1,016 frameworks with 316K cross-framework control mappings.
Which compliance frameworks address Risk Tolerance?
Risk Tolerance appears in the requirement text of NIST AI Risk Management Framework (AI RMF 1.0), API 1164, Protective Security Policy Framework (PSPF) Release 2026, NIST Cybersecurity Framework 1.0, NIST Cybersecurity Framework 1.1. Across these standards we have identified 18 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Risk Tolerance?
Explore our compliance framework pages to see how risk tolerance applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 1,016 frameworks.

See how Risk Tolerance applies across compliance frameworks

Our platform maps 1,016 frameworks with 316K cross-framework control mappings. Explore how this concept is addressed across standards.

Written and maintained by Gerard Blokdyk, The Art of Service.