Black Swans, Gray Rhinos, and Tigers..Oh My with Michele Wucker

The financial world seems to have a fascination with zoomorphism – the attribution of animal names, emotions, or intentions to non- animal occurrences like market shocks. Black Swans are the famous one, but there’s also been White Moose and Gray Rhino added to the lexicon.

And in this episode of The Derivative, we’re focusing on the Gray Rhino risk metaphor created by author of The Gray Rhino – Michele Wucker. A Gray Rhino is a clear and present danger in business, life, and the world that gets short shrift despite—indeed, often because of—its size and obviousness.
Look at recent headlines full of companies that ignored gray rhinos: auto companies that forgot how crucial safety is to their reputation and bottom line; to the financial institutions where warnings went unheeded; and to the many firms whose networks were hacked and reputations damaged because they didn’t pay enough attention to cyber security. Consider the decisions we all make daily, putting off what we know is important to do, and paying the consequences. (Wucker.com)
Listen to the snippet below as we discuss with Michele some more recent gray rhino events and the risk analysis behind them:

Listen to the whole episode now:

 

About Michele Wucker
Follow along with Michele on LinkedIn, Twitter, and her website and purchase the Gray Rhino here.

Bio: Michele Wucker coined the term “gray rhino” to draw attention to the obvious risks that are neglected despite – indeed, often because of- their size and likelihood. The metaphor has moved markets, shaped financial policies, and made headlines around the world. Michele’s 2019 TED Talk has attracted more than two million views. She is the author of three books including the international bestseller THE GRAY RHINO: How to Recognize and Act on the Obvious Dangers We Ignore (St Martin’s Press, 2016). which China’s leadership has used to frame and communicate its crackdown on financial risk. Drawing on three decades of experience in financial media and think tank management, turnarounds, and economic policy analysis, Michele is founder of the Chicago-based strategy firm Gray Rhino & Company. She has been honored as a 2009 Young Global Leader of the World Economic Forum and a 2007 Guggenheim Fellow.

Michele also is the author of LOCKOUT: Why America Keeps Getting Immigration Wrong When Our Prosperity Depends on Getting It Right (PublicAffairs, 2006/7) and WHY THE COCKS FIGHT: Dominicans, Haitians, and the Struggle for Hispaniola (Hill & Wang, 1999/2000).

Her previous positions include Vice President for Studies at The Chicago Council on Global Affairs; President of the World Policy Institute; and Latin America Bureau Chief at International Financing Review. Her writing has appeared in publications around the world including CNN.com, The Guardian, The New York Times, The Washington Post, and The Wall Street Journal. She has been interviewed by many media including National Public Radio, CNN, CNBC, MSNBC, and Fox News.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

logo