Assessing nuclear risk in the aftermath of Fukushima

Assessing nuclear risk

The meltdown at the Japanese Fukushima Daiichi nuclear generator following the March 11 earthquake and tsunami is likely to result in financial losses comparable to, if not greater than, the losses experienced by some merchant banks during the recent financial crisis.

The Fukushima incident clearly demonstrates that a reactor accident can be the single largest financial risk facing the chief risk officer (CRO) of a nuclear generating company, far outpacing market, credit, and operational risks,