CAPITAL regularly protect the potential risks built-in in a transaction or occupation; funds allocated behave as a buffer against unforeseen losses which help guarantee SOLVENCY is maintained. Money may be allocated through both internallydeveloped and regulatory components. See additionally ECONOMIC CAPITAL, REGULATORY CAPITAL, RESERVES, RISKADJUSTED CAPITAL, RISKADJUSTED RETURN ON CAPITAL.
the entire process of dividing savings among several company features and/or departments. The purpose of capital allocation should optimize output per buck invested.
The implementation of money to different company segments. See also Resource allocation.