Risk Tolerance
Risk tolerance is the acceptable variation around an organization defined risk appetite for a specific context, asset, process, or business decision.
Risk tolerance translates broad appetite into practical thresholds for action, escalation, review, or acceptance.
Why it Matters for Insider Risk Exposure
Helps teams make consistent operational decisions.
Supports thresholds for access review, monitoring, and escalation.
Connects program metrics to leadership expectations.
Real-World Scenarios / Examples
- Maximum acceptable time to revoke leaver access.
- Threshold for privileged access review delays.
- Allowed number of unresolved high-severity access exceptions.
Common Mistakes / Misconceptions
- Setting thresholds without evidence.
- Using tolerance as an excuse not to act.
- Failing to revisit tolerance as exposure changes.
Insider Risk Capability Framework™ (IRCF™) Alignment
Strong alignment with Governance, Oversight and Compliance, and Risk Management and Reporting.
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