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Economic capital / Other risks [8]

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Bullet points include: Determination of company or product risk profile and hence of diversification impact Capital budgeting, including impact of various possible new business profiles Evaluation of required capital in M&A situations (N.B. if multiple companies evaluating same target then correlation of risks with the acquired business becomes particularly importantOC) Product pricing, should reflect economic capital tied up and then released during the product life Setting risk tolerances and constraints

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