Defined as extreme events with high impact, Black Swans are
infrequent occurrences that pack a punch (i.e. in financial
markets the 2008 crisis, or 2010 flash crash). However a new
study shows as the combination of machine trading and speed
intertwine, these extreme events are occurring more often than
previously imagined. As markets continue to connect and
participants become linked, each extreme bounce and/or collision
may slowly break the system. Nassim Nicholas Taleb is the person
most responsible for burning the concept of low probability,
high impact events into the minds of global business executives.
Coining the term “Black Swans” as the name for extreme outliers
with devastating consequences, Taleb has put executives on
notice that they need more built-in redundancy and should
incorporate slack in business processes to cushion against
failure. However as technology proliferates and advances thus
speeding processes, it appears humans are increasingly removed
from decision making. Thus ensuring a littl