Enterprise risk & controls · Working
Risk capacity
Also called: capacity for risk
ELI5
The maximum risk an organisation can absorb without threatening viability or obligations.
Used in conversation
“Do not describe risk capacity as agreed until the operative document says so.”
Pitch context
You will see “Risk capacity” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.
Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 3
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16