Short Definition
The level of risk or uncertainty an individual or organization is willing to accept in decision-making processes, often used in financial, business, and project management contexts.
Relevance
In addition to organizational analyses, risk tolerance can be used to think about how under-resourced and exploited individuals and communities may face greater economic precarity and uncertainty in the cultural and technological sectors. As a result of historical and ongoing exploitation, for example, Black, Indigenous, and Disability Justices communities often encounter systemic barriers that make the risks associated with low pay, unstable contracts, or potential harm more difficult to bear. When programming, organizations should take these factors into account, seeking to reduce harm and provide more stable, supportive opportunities. Considering risk tolerance across diverse groups can help build safer, more equitable participation in the sector.