A fundamental element of the business strategy process is allocating capital and corporate resources. Managers of this process are often faced with complicating factors such as financial risk and uncertainty about potential outcomes. This paper describes a decision science methodology for systematically integrating the processes of business strategy and capital allocation. We present an application of this methodology by a large oil and gas company concerned with allocating an annual $200 million capital budget. This approach is shown to have broad implications for managers in all sectors and provides rich insight into the effects of integrating corporate objectives and risk policy into the investment choice process.