5Q Quadrants·of·Risk

The framework · one of five quadrants

Q2 · The Coconut

The Coconut

The rare, high-impact event that was always coming, and was always going to be called unforeseeable afterwards.

The hazard was known. Its size was not. The event lands far out in a tail nobody had priced, bigger than anything in the record the defences were built against, and being possible was never enough to fund the defence.

How to spot it. Ask what the defences were sized against, then ask what the worst case on record actually is. The gap between those two is this quadrant.

Pen-and-ink drawing by David Munro: a man lies on a beach towel under a leaning palm, hands behind his head, looking up as a coconut falls towards him.

Not sure this is your quadrant? Find your quadrant takes about thirty seconds.

14Events in this quadrant

Every event filed in Q2 The Coconut

The other four quadrants

The newsletter

Every week, one story from one of the five quadrants, in full.

No spam, one email a week.