Risk tolerance methodology

Risk tolerance is our willingness to bear a risk. Understanding risk tolerance helps us decide how to manage the potential impacts of a hazard on the things we value (such as our health, environment, economy, and buildings and infrastructure).

This methodology developed by the Risk Reduction and Resilience team at NHC Toka Tū Ake seeks to fill a critical gap in Aotearoa New Zealand’s well-established hazard risk management approaches. This will enable more robust and transparent risk-based decision-making.

Since the release of the Risk Tolerance Methodology in 2023, it has been tested and used across government and with researchers.  We have received feedback and suggestions, and as a result have enhanced several aspects of the methodology.

Notable updates include the integration of scenario-based approaches for both pre and post-event planning, expanded guidance on risk criteria and thresholds, and improved direction on managing uncertainty.