Integrating Error Budgeting Frameworks and Knowledge Management in Financial Site Reliability Engineering: A Holistic Approach to Operational Resilience

Abstract

The contemporary landscape of financial Site Reliability Engineering (SRE) has witnessed a paradigm shift toward operational resilience and proactive risk management. Central to this transformation is the implementation of error budgeting frameworks, which provide quantifiable boundaries for acceptable system failures and operational incidents. These frameworks not only facilitate the measurement of reliability but also inform decision-making processes regarding resource allocation, risk mitigation, and system design priorities. However, integrating such frameworks into financial institutions’ complex operational architectures requires a multifaceted approach that encompasses knowledge management, corporate governance, and adaptive workflows. The present study investigates the theoretical underpinnings, practical applications, and systemic implications of error budgeting frameworks within financial SRE teams. Drawing upon Dasari (2026), this research situates error budgeting within the broader context of reliability engineering and knowledge management practices. The study employs a qualitative synthesis methodology, analyzing existing literature on knowledge management culture in non-profit and for-profit organizations (Kampioni & Ciolfitto, 2015), corporate social responsibility (Tetrault Sirsly & Lvina, 2019; Cho et al., 2015), international diversification strategies (Ferraris et al., 2016), and data-intensive modeling approaches (Zammit‐Mangion & Cressie, 2017). Results indicate that the operationalization of error budgeting frameworks requires not only robust technical monitoring and feedback mechanisms but also an embedded knowledge-sharing culture that promotes organizational learning and resilience. The discussion elucidates how integrating error budgeting with knowledge management, stakeholder engagement, and adaptive strategic planning enhances decision-making and fosters sustainable operational excellence in financial institutions. The study further addresses the limitations of current frameworks, proposing avenues for future research to explore cross-cultural applications, dynamic risk modeling, and the alignment of SRE practices with broader corporate objectives. The findings provide actionable insights for financial organizations seeking to optimize reliability without compromising innovation or agility, thereby contributing to both scholarly discourse and practical operational strategies.