Opportunity Cost Capital (OCC) is a concept that emerged from the idea of “opportunity cost” – the idea that when you choose one thing, you’re forgoing the opportunity to do something else. In the business world, OCC is the value of forgoing a certain investment in order to pursue another. It’s based on the belief that each dollar invested should provide the most benefit or return with the least amount of risk. Put simply, Opportunity Cost Capital is the cost of making a single decision rather than exploring all possible options. When properly managed, this capital can help businesses make smarter decisions and maximize their potential returns while minimizing potential risks.