Before revision:  Their definition requires two ingredients: first, a cash flow or value model that assigns to the capital allocations of the entities in the system a relevant stochastic outcome . The second ingredient is an acceptability criterion, i.e. a set of random variables that identifies those outcomes that are acceptable from the point of view of a regulatory authority.
After revision:  Their definition requires two ingredients: first, a cash flow or value model that assigns to the capital allocations of the entities in the system a relevant stochastic outcome ; and an acceptability criterion, i.e. a set of random variables that identifies those outcomes that are acceptable from the point of view of a regulatory authority.