ALARP(ALARP)

A formal, documented decision to accept a specific risk without further treatment, based on a determination that the risk level is within the organization's risk tolerance criteria or that further risk reduction is not reasonably practicable (ALARP). Risk acceptance requires explicit authorization from a designated decision-maker, documented rationale, a defined review period, and specified conditions or limitations.

The degree of risk that an organization is willing to withstand in pursuit of its objectives, expressed as specific thresholds or boundaries for different risk categories. Risk tolerance defines the upper boundary of acceptable risk — risks exceeding tolerance levels must be treated, transferred, or avoided. Risk tolerance is more specific than risk appetite and is typically expressed as quantitative criteria.

The amount and type of risk that an organization is prepared to seek, accept, or tolerate in pursuit of its long-term objectives. Risk appetite is a strategic, board-level statement that sets the overall tone for risk-taking across the organization. It is broader and more directional than risk tolerance, which provides specific measurable thresholds.

Risk Management standard — provides principles, a framework, and a process for managing risk. It applies to any type of risk regardless of its nature, whether having positive or negative consequences, and can be applied throughout the life of an organization to many activities including governance, operations, and decision-making at all levels.