Butterfly effect theory<\/strong><\/p>\r\n Edward N. Lorenz (American meteorologist: 1917-2008)<\/p>\r\n\r\n\r\n\r\n Invented “to highlight the possibility that small causes may have momentous effects.”<\/p>\r\n\r\n\r\n\r\n Predictability: Does the Flap of a Butterfly’s Wings in Brazil Set a Tornado in Texas? <\/em>Presented at: American Association for the Advancement of Science, December 29, 1972 [Link<\/span><\/a>]<\/p>\r\n\r\n _______<\/p>\r\n\r\n Black Swan theory of unexpected surprises<\/strong><\/p>\r\n Nassim Nicholas Taleb (2010)<\/p>\r\n\r\n\r\n\r\n [extraordinarily unexpected events: we did not see them coming]<\/p>\r\n\r\n\r\n\r\n [“<\/em>Oops, didn’t see that one<\/em> coming!“<\/em>]<\/p>\r\n\r\n\r\n\r\n The title is a metaphor to describe “an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight. The term is based on an ancient saying that presumed black swans did not exist \u2013 a saying that became reinterpreted to teach a different lesson after black swans were discovered in the wild.”<\/p>\r\n\r\n\r\n\r\n The Black Swan: The Impact of the Highly Improbable<\/em> [Link<\/a><\/span>]<\/p>\r\n _______<\/p>\r\n\r\n Gray Rhino theory of giant known misses<\/strong><\/p>\r\n Michele Wucker<\/p>\r\n\r\n\r\n\r\n [highly probable events: we ought to have known what will happen]<\/p>\r\n\r\n\r\n\r\n [“How did that<\/em> happen?”]<\/p>\r\n\r\n\r\n\r\n Gray Rhinos<\/em> is Wucker’s variation of Black Swans, defined as \u201ca highly probable, high-impact threat: something we ought to see coming. Wucker believes that the problem is systemic: the political and financial world rewards short-term thinking, and it\u2019s difficult for institutions to pivot quickly when necessary.<\/p>\r\n\r\n\r\n\r\n With so many recent examples of failures to respond to obvious threats, we ought to have a better handle on why we miss them, but cognitive biases make this difficult. Wucker explores the denial that keeps us from seeing threats, the panic that occurs when we don\u2019t make decisions in time, and ways to implement solutions and take reparative action \u201cafter the trampling.\u201d<\/p>\r\n\r\n\r\n\r\n The Gray Rhino: How to Recognize and Act on the Obvious Dangers We Igno<\/em>re [Link<\/span><\/mark><\/a>]<\/p>\r\n\r\n _______<\/p>\r\n\r\n Grey Swans theory of potential although unlikely horrendousities<\/strong><\/p>\r\n Daniel Liberto for Investopedia.<\/p>\r\n [An event of high significance whose possible occurrence is predictable although the “probability is considered small.”] [It is possible that a Planet-Killer might hit us someday…”]<\/p>\r\n Grey Swans <\/em>is another variation of Black Swans. Greys are predictable. Black Swans are unpredictable. What is thought to be possible, but improbable, whose appearance might spark globally significant change? Examples include: Brexit, the impact of the internet to news’ facts validation , and a political outsider winning a country’s Presidency. Grey Swans<\/em> is similar to an event “in electrical engineering, (where) gray swan<\/em> refers to the kind of events that rarely happens but have great impact on power systems.”<\/p>\r\n Grey Swan: What it is, How it Works, Examples<\/em> [Link<\/span><\/mark><\/a><\/span>]<\/p>\r\n _______<\/p>\r\n