All frameworksFramework
Capital Allocation Framework
Allocate capital to its highest risk-adjusted use.
Principles
- Allocate to risk-adjusted return
- Kill weak projects fast
- Reallocate dynamically
Capabilities
- Hurdle rate setting
- Capital project gating
- Portfolio prioritisation
Operating model
- Quarterly capital allocation forum
- Annual capital plan
Core controls
- Investment approval thresholds
- Post-investment review
KPIs
How this framework is measured
Free Cash Flow
Formula · Operating Cash Flow − CapEx
Threshold · Positive, ≥ plan
EBITDA Margin
Formula · EBITDA / Revenue
Threshold · ≥ board target
Linked assessments
No direct assessment — covered through the master Treasury Maturity Index.
Linked advisory
Knowledge Graph