The article discusses how financial institutions determine the amount of money they need to set aside for unexpected losses, known as Economic Capital, when faced with limited cash. They use a method called Value-at-Risk to calculate this amount, which considers different levels of risk and knowledge. By allocating this surplus to different parts of the business based on risk and management style, companies can ensure they have enough money to cover potential losses. This approach doesn't require considering how different parts of the business might affect each other, and it allows for decentralized decision-making within the organization.