What Does Capital Attribution Mean?

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What does Capital Attribution mean? Read on to discover the definition & meaning of the term Capital Attribution - to help you better understand the language used in insurance policies.

Capital Attribution

Capital Attribution

In enterprise risk management (ERM), the assignment of enterprise level capital to the various business segments (e.g., lines of business, regions, projects) that make up the enterprise, in recognition of the relative risk of each segment, for purposes of measuring segment performance on a risk-adjusted basis.

We hope the you have a better understanding of the meaning of Capital Attribution.

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