A Survey of Capital Allocation Methods with Commentary Topic 3: Risk Control

Abstract
A number of methods of allocating capital to business unit, e.g., line of business, profit center, etc., are discussed. Goals of capital allocation include testing the profitability of business units and determining which units could best be grown to add value to the firm. Methods of approaching these questions without allocating capital are included in the discussion.

Keywords: capital allocation, risk measures
Volume
Berlin
Year
2003
Categories
Actuarial Applications and Methodologies
Capital Management
Capital Allocation
Publications
ASTIN Colloquium
Authors
Gary G Venter