Concept
Black swan event
- A black swan event refers to a risk event that is infrequent (maybe once or twice in a lifetime), unpredictable (you cannot foresee it with sufficient time to act) and catastrophic in its impact. The tsunami of 2004 would fit this description in a natural context. In a financial context, any major and drastic turn down, such as the dot-com bubble of 2000, fits this description.