There are many unknown risks in the financial industry, and the term "grey rhino" was born from "financial risk". So do you know what the gray rhino incident actually means? What kind of thing are you referring to? In fact, this word is very easy to understand. It is a general term for all risks that are too common, taken for granted, and have a high probability of occurring, and may have a huge impact. Let’s learn more about it together! What does the gray rhino incident mean:

What is a gray rhino? In fact, it is very simple to understand. It refers to a risk crisis that is too common or may occur with a high probability, so it is collectively called the gray rhino incident. The counterpart is a black swan event, which refers to a very rare and unexpected risk event. For example, the new crown epidemic that occurred this year can be understood as a "black swan event". Now everyone should Got it?

There are many typical cases about "grey rhino" in history. Let me introduce a few to you! Typical cases of the gray rhinoceros incident:

1. High housing prices

With the development of the economy, the continued rise in housing prices is something that everyone is accustomed to, but behind the high housing prices are also facing great challenges Risks. If an uncontrollable situation occurs, the impact on the economy will be very large, so this is an event that must be avoided!

2. The U.S. subprime mortgage crisis

The U.S. subprime mortgage crisis in 2008 can be said to be the most famous gray rhino incident, because in 2007, the United States could not obtain Loan customers provided a large number of loans. At that time, everyone knew that there were great risks behind the loans, but in order to obtain higher interest returns, they ignored the risks. In the end, it led to the outbreak of the subprime mortgage crisis and caused A global financial crisis!

3. Risk of suffering from serious illness

The concept of suffering from serious illness in a person's life is 72 or more. If you live long enough, the probability will greatly increase. But everyone knows the risk of suffering from serious illness, and the impact of getting sick is also huge, so people need to prevent this risk in advance!

After reading the above cases, I believe you have a clearer understanding of the "grey rhinoceros". Therefore, while preventing "black swans", we cannot ignore the "black rhino". If you want to eliminate all risks, you need to cut off all possibilities from risks at the root!