In a multi-tenant or shared environment the OS must allocate devices fairly and securely among different virtual machines or processes. For example a hypervisor or OS may use IOMMU to partition DMA access, assign virtual functions (SR-IOV) for network cards, isolate GPUs via hardware virtualization, and use quotas or scheduling for access. Challenges include performance isolation (one tenant hogging device), security isolation (preventing DMA attacks or shared memory leakage), scheduling of I/O bandwidth, interrupt sharing, driver compatibility, and load balancing. In interview responses mention these challenges and how OS design or hypervisor can mitigate them — e.g., using hardware partitioning, IO-virtualization, and monitoring of usage.