Viewing situations through a narrow lens can lead to underestimating the complexities and unpredictability inherent in various scenarios. Frank Knight's work emphasizes the limitations of relying on normal distributions without sufficient data, illustrating the unpredictable nature of certain phenomena. While some aspects are highly predictable, such as examples in nature, it is crucial to acknowledge and accept the inherent unpredictability in certain situations.
Gerald Ashley is the Co-founder and Managing Director of St Mawgan & Co, a London-based strategy and risk consulting agency.
In today’s episode, Gerald explores the difference between risk and uncertainty, the challenges of managing them in the financial world, and how it can be powerful to split issues into either puzzles, problems, or messes.
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This show is produced in collaboration with Wavelength Creative. Visit wavelengthcreative.com for more information.