The Black Swan Problem

Used widely to describe extremely unlikely but devastating events, the term "black swan" has taken on an increasingly prominent (and anxiety-inducing) role in the perspectives of risk professionals and executives around the world. After all, it seems that once-in-a-lifetime incidents like pandemics, environmental disasters, and financial crises are occurring more frequently than ever before. In The Black Swan Problem: Risk Management Strategies for a World of Wild Uncertainty , veteran risk and valuation expert Håkan Jankensgård delivers an intensely insightful exploration of how organizations can and should navigate an increasingly uncertain and unpredictable commercial environment. In the book, you'll find three foundational and high-level strategies for improving your firm's resilience in the face of "black swan" risks: insurance, buffering, and flexibility. The approaches are presented alongside detailed case studies, stories, and examples of major firms that failed to anticipate black swan events and, as a result, were either wiped out entirely or experienced major operational disruptions. The Black Swan Problem tackles an issue that's often discussed from an academic viewpoint with a uniquely organizational perspective, priming organizations to be proactive rather than reactive. It offers protective methods and tactics anyone can use to mitigate black swan risks and prevent existential crises, turning crushing loss into invaluable opportunity. It presents fascinating outlooks on risk-taking in firms, showcasing approaches that do more than just minimize risk. An irreplaceable roadmap for companies doing their best to anticipate, mitigate, and process tail risks, The Black Swan Problem is a can't-miss resource for students and practitioners of risk management, executive-level leaders at organizations of all sizes, company founders, managers, and other business leaders.