The PwC white paper explains how to set and test impact tolerances as part of building operational resilience. Impact tolerance is the maximum disruption a critical business service can endure before causing intolerable harm to consumers, market integrity, or financial stability. PwC proposes a five-step approach: identify and map services, gather baseline data, set tolerances, scenario test, and establish governance. Firms must assess critical services, quantify tolerances, and run severe-but-plausible scenarios to validate them. Ongoing governance includes board-approved self-assessments, monitoring, and remediation. Impact tolerances complement risk appetite by focusing on survival after risks crystallize. Regulators expect firms to embed this into resilience frameworks within defined t

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