Risk tolerance

The readiness to bear a given risk in order to achieve objectives 1. Engineered as the highest residual band a system tier may carry before a deploy gate requires a signed acceptance.

Developed in
ch. 13, Risk appetite and tolerance, compiled into gates
Chapters
ch. 13, Risk Management
Contrast with
Risk appetite
Source
1 numbered reference, listed below

Commonly confused

  • Risk appetite versus Risk tolerance

    Risk appetite
    How much risk, and of which kinds, an organisation is prepared to take on in pursuit of its objectives.
    Risk tolerance
    The readiness to bear a given risk in order to achieve objectives.

    The differenceHow much risk the organisation will take on overall, against the residual band one system may carry.

    Why it mattersAppetite is a board statement compiled to data; tolerance is the threshold a deploy gate reads.

Where it is used

3 chapters of the Body of Knowledge use the term. Each link opens the first section that does.

Risk tolerance: mentions per chapter10 mentions of the term across 3 of the 23 chapters of the Body of Knowledge; the chapters the glossary cross-references are drawn solid.Cross-referenced chapterOther chapter13 Risk Management: 8 mentions13 Risk Management814 Development: 1 mention14 Development122 Principles & Standards: 1 mention22 Principles & Standards1No mentions in the other 20 chaptersSource: the Body of Knowledgev0.5.0
Risk tolerance: mentions per chapter10 mentions of the term across 3 of the 23 chapters of the Body of Knowledge; the chapters the glossary cross-references are drawn solid.Cross-referenced chapterOther chapter00010203040506070810111213 Risk Management: 8 mentions81314 Development: 1 mention1141516171819202122 Principles & Standards: 1 mention12223Source: the Body of Knowledge v0.5.0
Mentions per chapter How often each chapter names the term, with the chapters the glossary cross-references drawn solid. The longest bar is where to read the term in use; bars spread across many chapters mark a term that runs through the discipline.
Mentions as a table
Mentions of Risk tolerance per chapter
ChapterMentionsCross-referenced
00 Preface0No
01 Definition0No
02 Why Now0No
03 Values & Principles0No
04 The Stack0No
05 Patterns0No
06 The Role0No
07 Maturity Model0No
08 Regulatory Map0No
10 Reading List0No
11 AI Defined0No
12 Governance Program0No
13 Risk Management8Yes
14 Development1No
15 Deployment0No
16 Fairness & XAI0No
17 Incidents0No
18 EU AI Act0No
19 Privacy & AI0No
20 Existing Law0No
21 AI Laws Worldwide0No
22 Principles & Standards1No
23 AI Agents0No

Patterns that use this term

One pattern page uses the term.

Risk tolerance: related terms and patternsThe term at the centre; related terms on solid edges, the terms it is contrasted with on dashed edges, and the patterns that use it most in the colour of their layer.RelatedContrastColour: stack layer of the pattern01 Govern-as-CodeRisk toleranceRelated terms (1)Proportionate governance · RelatedProportionate governanceContrast with (1)Risk appetite · ContrastRisk appetitePatterns using it (1)Use-Case Intake & Risk Tiering, 1 mention · Uses the termUse-Case Intake & Risk Tiering
Risk tolerance: related terms and patternsThe term at the centre; related terms on solid edges, the terms it is contrasted with on dashed edges, and the patterns that use it most in the colour of their layer.RelatedContrastColour: stack layer of the pattern01 Govern-as-CodeRelated terms (1)Proportionate governance · RelatedProportionate governancePatterns using it (1)Use-Case Intake & Risk Tiering, 1 mention · Uses the termUse-Case Intake & Risk TieringContrast with (1)Risk appetite · ContrastRisk appetiteRisk tolerance
The term's neighbourhood Terms related to this one on solid edges, terms it is often confused with on dashed edges, and the patterns that use it most in the colour of their layer. Follow a dashed edge to check the distinction before you use either term.
Neighbourhood as a table
Neighbourhood of Risk tolerance
FamilyItemRelation
Related termsProportionate governanceRelated
Contrast withRisk appetiteContrast
Patterns using itUse-Case Intake & Risk Tiering, 1 mentionUses the term

Sources

  1. [1] Artificial Intelligence Risk Management Framework (AI RMF 1.0), NIST AI 100-1 (risk tolerance and residual risk; seven trustworthy characteristics; transparency answers "what happened", explainability "how", interpretability "why"; MAP 1.1 intended purposes; MANAGE 1.1 go/no-go determination; profiles). NIST. 2023-01-26. https://doi.org/10.6028/NIST.AI.100-1 (verified: primary)

Definitions of legal terms paraphrase the cited text, which governs. Dated statements are as of .

Cite this term

García Aibar, J. (2026). Risk tolerance. In AI Governance Engineering: The Thesis & Body of Knowledge (v0.5.0), Glossary. https://doi.org/10.5281/zenodo.22956197. https://aigovernanceengineer.com/glossary/risk-tolerance. CC BY 4.0

BibTeX

@misc{aige2026risktolerance,
  author  = {Jorge García Aibar},
  title   = {{Risk tolerance}},
  note    = {Glossary, AI Governance Engineering: The Thesis \& Body of Knowledge, version 0.5.0},
  year    = {2026},
  doi     = {10.5281/zenodo.22956197},
  url     = {https://aigovernanceengineer.com/glossary/risk-tolerance}
}