Black Swan Event

A “Black Swan Event” refers to an unpredictable event that is beyond what is normally expected and has severe consequences. The concept was popularized by Nassim Nicholas Taleb in his 2007 book “The Black Swan.” These events are characterized by their rarity, extreme impact, and the human tendency to concoct explanations for them after the fact, making them seem less random and more predictable.

Examples and Cases

• 2008 Financial Crisis: The collapse of major Financial Institutions due to the housing market crash and subsequent recession was largely unforeseen and had widespread global implications.
• September 11 Attacks: The terrorist attacks in the United States were unexpected events that had profound effects on global security and politics.
• COVID-19 Pandemic: The outbreak of the coronavirus was a sudden health crisis that disrupted economies and societies worldwide, with long-lasting consequences.
• Discovery of the Internet: The rapid evolution of the Internet transformed communication, commerce, and entertainment in ways that were unimaginable before its widespread adoption.