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"No major projects can be launched without social risk evaluations," Zhou Shengxian, the environment minister, said at the news conference.
Since then, to satisfy regulators, companies that run nuclear power plants use snippets of information coming out of a plant to develop simulations of what is happening inside and to perform a variety of risk evaluations.
The national government had previously said on several occasions that it was studying ways to conduct social risk evaluations, and the current Five-Year Plan through 2015 calls for a mechanism to be created to make such assessments.
We know now that deals between the big banks and the rating companies (especially Moody's, Standard & Poor's and Fitch) wrongly inflated risk evaluations of those securities.
"We want to use 5 parts per billion as an action advisory level in light of recent risk evaluations," Mr. Shinn said at the time.
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For companies and potential investors, the challenges are those of risk evaluation and risk management.
In the modern financial system, by contrast, risk evaluation involves two things: impersonality and outsourcing.
This kind of risk evaluation — what's called "medical underwriting" — is fundamental to the insurance business.
As a species, humans tend to be very good at risk evaluation.
One serious defect in the risk evaluation of Iksil's position was that its limit was folded into the aggregate risk of the unit's entire portfolio.
"This is a recognition that they lost the handset war," said James H. Gellert, the chairman and chief executive of Rapid Ratings, an investment risk evaluation firm.
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