What is the purpose of an "authorization to operate" (ATO)?

The purpose of an "authorization to operate" (ATO) is a formal declaration that an information system is approved to operate. This process is critical within risk management and cybersecurity frameworks, as it signifies that an information system has undergone a thorough security assessment and complies with established security standards.

An ATO is granted by a designated authority, typically a senior organizational official, and indicates that the system's risks are acceptable within the organization's risk tolerance levels. By granting an ATO, the organization acknowledges that the system has implemented appropriate security controls and that these controls are operating effectively.

This approval is a critical component in ensuring that systems protecting sensitive or critical data are adequately secured before they are made operational. It emphasizes the organization's commitment to risk management and security governance and provides stakeholders with confidence that necessary precautions have been taken to safeguard information assets.