The article discusses how financial institutions make decisions about how much money to allocate for different purposes and how to fund those decisions. The researchers show that banks need to consider managing risks and that not all risks can be easily dealt with in the market. They suggest that banks should take into account their own risk management strategies when pricing risks that cannot be easily hedged. The study looks at how this approach can be used to evaluate trading operations and price certain types of financial positions. The researchers compare their method to a commonly used banking methodology called RAROC.