Defining Impact Tolerances — Your Resilience Reality Check
Why Impact Tolerances Matter going into 2026
You can’t protect what you don’t define. In today’s world of multi-layered threats — cyberattacks, infrastructure breakdowns, climate events, geopolitical shocks — it’s no longer enough to focus on continuity plans or recovery speed alone. The real question is:
How much disruption can your organisation absorb before customers, regulators, or stakeholders, including your people, are meaningfully harmed?
This is the purpose of impact tolerances — the clear, measurable thresholds of disruption your organisation can tolerate without crossing into crisis territory.
The 2026 Landscape: Rising Pressure to Know Your Limits
Regulatory frameworks are enforcing them:
- DORA (EU), UK FCA/PRA, APRA CPS 230 (Australia) — all require organisations to set impact tolerances for important business services.
Public expectation is escalating:
- Trust in brands depends on transparency and reliability, especially in financial services, healthcare, and digital infrastructure.
Most businesses, organisations and networks still operate in the vague:
- “Restore ASAP” ≠ a tolerance.
- “We’ll know it when we see it” = unacceptable in a compliance review or real-world failure.
Checklist: Are Your Impact Tolerances Fit for Purpose?
Ask yourself:
✅ Have we clearly identified our important business services?
✅ Do we know what actual harm looks like for each service (financial, reputational, regulatory, customer)?
✅ Have we defined quantifiable limits (e.g. duration of outage, number of customers affected)?
✅ Are tolerances linked to real-world testing (e.g. scenario-based exercises)?
✅ Have we aligned impact tolerances with board and executive risk appetite?
✅ Are they reviewed regularly — not just once and filed away?
If any of these are unclear, your tolerances may exist only on paper — not in practice.
Strategic Value: More Than a Compliance Checkbox
Setting and maintaining impact tolerances helps organisations:
- Prioritise resources and recovery plans where the stakes are highest;
- Communicate risk and resilience expectations clearly across technical and business units;
- Avoid last-minute decision-making in a crisis — when response speed matters most;
- Demonstrate assurance to regulators and stakeholders that resilience is more than just a buzzword.
Mitigation Measures: From Tolerance to Action
Once your tolerances are set, here’s how to make them work:
Embed into planning
- Use tolerances to guide continuity planning, fallback procedures, and incident response playbooks.
Test under stress
- Run exercises where tolerances are intentionally breached to see how teams respond and recover.
Link to metrics
- Build dashboards and KPIs around tolerances to monitor real-time service health.
Document decisions
- Keep an audit trail of why tolerances were chosen, how they’re maintained, and when they’ve been reviewed or changed.
Include third parties
- Don’t forget vendors and platforms — their failure may push you over your tolerance line.
Closing Thought: Know Your Limits — and Protect Them
Impact tolerances are not theoretical. They’re practical guardrails for how much failure your business can survive before you’re in real trouble.
In a year defined by compound risks, tightened regulations, and unforgiving headlines, clarity around your risk limits isn’t just a resilience win — it’s a leadership one.





















