Grey Swans and Gray Rhinos in land of Risk Management

  • we ignore events with limited data and low probability but high impact
  • impact of Gray Swan events is substantial — over 50% of shareholder value was destroyed in 10% of the cases
  • Recovering from Gray Swan events requires focused attention and investment
  1. Preparedness — commitment to loss prevention and risk management
  2. Leadership — visible and proactive leadership from CEO
  3. Communication — quick and accurate to be effective
  4. Action — rapid, specific and credible
  5. Change — commitment to change

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