Grey Swans and Gray Rhinos in land of Risk Management

What are Grey Swans and Gray Rhino’s in the world of risk management?

Before speaking about Grey Swans let me bring up their celebrity cousin, the Black Swan. Black Swans have been immortalized in risk management by Naseem Taleb’s classic book and are now part of the lexicon of the risk manager. Black Swans are characterized by 3 features as defined by Taleb- 1) they are extremely rare events; (2) they have a drastic impact and most importantly (3) they cannot be predicted but can only be explained after the event has occurred. In…