Black Swan Event

A black swan event is an unpredictable and rare event that has a significant impact and is often inappropriately rationalised after the fact as predictable. It is a metaphor used to describe events that are beyond normal expectations and have severe consequences. These events are typically unexpected and have a profound impact on society, economies, and financial markets.

The term “black swan” was popularised by Nassim Nicholas Taleb, a former Wall Street trader and risk analyst, in his book “The Black Swan: The Impact of the Highly Improbable.” Taleb argues that black swan events are often underestimated or overlooked because they are rare and difficult to predict. Examples of black swan events include the 9/11 terrorist attacks, the Fukushima nuclear disaster, and the 2008 global financial crisis.