A Black Swan event in the finance world refers to an extremely negative rare event that is impossible to predict. Such events are random and have widespread ramifications. The term is inspired by the possibility of seeing a black swan among a group of white swans. The term highlights the ris...
A black swan event, a phrase commonly used in the world offinance, is an extremely negative event or occurrence that is impossibly difficult to predict. In other words, black swan events are events that are unexpected and unknowable. The term was popularized by former Wall Street trader Nassim...
Revenge spending is a phenomenon where consumers rush to spend more than they normally would on products and services, typically those that they feel they were deprived of during an adverse economic event. Revenge spending is a contributor to stronger economic growth andinflation, as greater consumer...
Black Swan Event is a metaphor describing an unexpected phenomenon with a low probability of occurrence, yet has a significant impact.
Since the likelihood of a black swan event occurring is low, leaders may dismiss the risk (if they are even conscious of it). But, the grave consequences of black swan events can pose a much larger threat. Following are real-world examples of weak crisis management and the lessons crisis ...
Of the first white pilgrim’s bended knee, Where exile turned to ancestor, And God was thanked for liberty. I have run through the night, my skin is dark, I bend my knee down on this mark: I look on the sky and the sea. The lines are written from the perspective of a black slav...
Idiosyncratic Riskis uncorrelated to the risk of the broader market and can be mitigated via portfolio diversification. Often used interchangeably with the term “unsystematic risk,” idiosyncratic risk is the risk inherent to a particular company or sub-sector of comparable companies, as opposed to ...
Challenges of Human Resource Planning (HRP) HRP offers many advantages but it isn't without challenges. The future isn't easy to predict. A technology breakthrough can change everything, as can ablack swanevent. Issues such as employees getting sick and wealthier or more prestigious competitors...
One of the most oft-cited examples of a black swan event was the housing market crash of 2008. It occurred shortly after the 2007 publication ofThe Black Swan,and it ticked all of the boxes in Taleb's description: Prior to the crash, it was impossible to calculate the probability that t...
The term grey swan is a play on Taleb's concept of an unpredictable black swan event, but is fundamentally different in that it is predictable. Grey swans can be positive or negative and significantly alter the way the world operates, which is why we are urged to take them seriously. ...