Making the Right Decisions in a Changing Environment
Respect for the relationship between strategy, capital capacity, and risk has never been more important given current pressures on operating margins. Organizations must find an acceptable balance between the need for continuing strategic investment and their ability to generate capital capacity - i.e., the capital required to fund strategic and routine capital needs.
Given these pressures and others, the ability of an organization's core business to support all of its strategic capital requirements is limited. This means that the capital process must now manage a range of decisions, many of which were outside the purview of capital decision making in the past.