Redistribution System: A system created to redistribute resources against risk and show the overflow. This helps establish how much extra resources you have and can redistribute.
When we think about the resources we have, we tend to hoard them with the idea that you never know what will happen tomorrow. This is an issue because it is a poor utilization of resources. Not only where you use those resources, but also whether you keep those resources. The idea of a redistribution system is finding the optimized allocation of resources. This can mean redistributing your resources to reduce risk, but also of giving excess resources away if they can be better utilized by someone else.
The System
You could say that a redistribution system is subjective as it depends on the risk sensitivity of the individual. Outside of that it should remain as objective as possible. First you take into account the resources of the individual. This won’t be the standard resource system as this will be more weighted toward the monetary resources. Once you have this you should compare it against the risk profile of the individual. This should allow the individual padding in times of stress, but shouldn’t let the padding become too big. Anything past this padding is considered excess resources. This then should be redistributed. It should also show you how to adjust your risk to allow for more excess resources. Generally if resources are available through other sources for longer term financial requirements, it is more efficient to rely on those and redistribute the excess today. The system should account for this.
Resources – Risk = Excess Resources
Resources Should Be Reallocated To Reduce Risk