6 Team Play: The Context of Economic Capital In the previous chapters, we have discussed in detail how economic capital works. No single risk measure can capture all aspects of risk, however. In this chapter we consider how other risk management tools complement economic capital. Although economic capital can help to identify exposures that may give rise to large unexpected losses, it does not provide insight into the expected or potential loss if a specific event would occur. Stress testing can complement eco- nomic capital in this respect, as we will discuss in Section 6.1. Enterprise risk management (ERM) provides a wider risk management framework, in which economic capital has its place. We will discuss ERM in Section 6.2. An institution cannot manage its available capital only on the basis of eco- nomic capital considerations; it must also comply with minimum regulatory capital requirements. We will discuss in Section 6.3 how regulatory capital constraints can be managed within an economic capital framework.