Enhancing Operational Resilience through Error Budgeting in Financial Site Reliability Engineering: A Comprehensive Framework

Abstract

In contemporary financial institutions, operational reliability is not merely a technical requirement but a strategic imperative, particularly as digital banking becomes increasingly pervasive. This research examines the integration of error budgeting frameworks within financial Site Reliability Engineering (SRE) teams, highlighting their practical implications for risk mitigation, service continuity, and organizational trust. Leveraging a multi-theoretical approach, this study synthesizes insights from systems engineering, organizational behavior, and financial technology, establishing a robust framework for managing errors without compromising innovation velocity. Drawing upon Dasari (2026), who provides a foundational model for error budgeting in financial SRE, the research explores the mechanisms through which error budgets can be operationalized, including service-level objectives (SLOs), risk tolerance thresholds, and proactive incident management. By critically evaluating existing SRE practices across financial institutions, the study identifies persistent challenges, including misalignment between business risk appetite and technical thresholds, underdeveloped post-incident learning structures, and the complexity of measuring error impact in high-frequency digital environments (Beyer et al., 2016; Hochstein, 2021). Methodologically, the research adopts a qualitative case-study approach, triangulating data from industry reports, practitioner interviews, and operational metrics. Findings suggest that the adoption of structured error budgeting not only enhances system reliability but also fosters a culture of blameless accountability, improves stakeholder confidence, and aligns operational practices with regulatory expectations for financial resilience (Basel Committee on Banking Supervision, 2021; ACCENTURE, 2021). Moreover, the study explores the integration of automation and observability tools in SRE, highlighting their role in maintaining service continuity while preserving development agility (Limoncelli et al., 2014; Garraghan et al., 2021). This comprehensive analysis underscores the strategic significance of error budgeting as a mechanism for balancing operational risk and innovation in financial SRE, offering both theoretical contributions and actionable insights for practitioners and policymakers seeking to optimize digital banking infrastructure in an era of increasing complexity.