The article discusses how companies can use reserve capital to reduce business risks. It explains the rules for setting aside this money and how it can be used. The researchers found that only a few types of businesses make enough profit to rely on their own earnings or extra funds, rather than reserve capital. They also show that reserve capital is different from additional capital because it is specifically saved for emergencies and may not be used for a long time. The article suggests a new way to track reserve capital in accounting.