Courtesy of Flickr. By Al S

No Gold Medals for “Black Swan” Criers?

It’s extremely unfashionable to be the “Black Swan” crier in your organization, or the person who warns line of business managers about the heavy impact of extreme but unlikely events. In fact just the opposite is the norm, where plenty of company executives get rewarded in career growth and compensation for ignoring risks, or sweeping them under the rug for others to tackle down the road. It’s time to listen—really listen—to what Black Swan criers in your own company are saying.

The Softer Side of Risk Management Means Fewer Analytics

For the past 25 years, with their elegant analytical models, quantitative analysts and transplanted physicists have ruled the roost in Finance. However, as global financial flows (and financial products) get more interconnected, complex and opaque; investors and managers are finding this new paradigm terrifying. It’s high time to supplement quantitative strategies with the softer side of risk management—before it’s too late.

Fight Back Against Black Swan Fatigue

When it comes to preparing for low probability but high impact events (i.e. Black Swans), the sad truth is most business executives will do nothing. Why? Nassim Taleb, author of the Black Swan, explains; “It is difficult to motivate people in the prevention of Black Swans. Prevention is not easily perceived, measured, or rewarded; it is generally a silent and thankless activity. History books do not account for heroic preventive measures.