Understanding Black Swan Events and Risk Management

This chapter delves into Black Swan events, highlighting their unforeseen occurrences and significant effects across technology and finance. It critiques traditional risk models and offers strategies for welcoming positive surprises while mitigating negative risks.

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Ever felt like life just sucker-punched you out of nowhere? That's exactly what Nassim Taleb calls a Black Swan event.

Most people think they can predict the future by looking at patterns. They study charts, analyze trends, and feel safe in their little bubble of certainty.

However, the biggest events that shape our lives—market crashes, pandemics, breakthrough innovations—are the ones nobody sees coming. ..

Taleb argues we're all like turkeys getting fed every day, thinking tomorrow will be the same, until suddenly it's Thanksgiving. The real mind-bender? We convince ourselves afterwards that we "should have seen it coming."

This is critical for understanding finance or world events

More than that, it's about how your brain tricks you into thinking you understand a world, that's fundamentally unpredictable.