According to the CRISC Review Manual1, risk tolerance is the acceptable level of variation that management is willing to allow for any particular risk as it pursues its objectives. Risk tolerance provides a helpful reference point when communicating the results of a risk assessment to stakeholders, as it helps to compare the current level of risk exposure with the desired level of risk exposure, and to prioritize and allocate resources for risk response. Risk tolerance also helps to align the risk assessment results with the stakeholder expectations and preferences, and to facilitate risk-based decision making. References = CRISC Review Manual1, page 192.