Attempting to classify, rank and understand the different types of risk we face in our businesses, investments and in day to day life is not easy. Degrees of magnitude are difficult to sort if outcomes are non-linear, subject to crowd valuation and part of complex systems. We need a broad framework to understand risk and a roadmap to guide us when we get lost.

Ever since author Nassim Taleb introduced Black Swans into our lexicon and after the devastating financial events of 2007 and 2008 supported his thesis, Corporate Risk Departments, Hedge Funds and Individuals have been searching far and wide in a Don Quixote-esque hunt for the elusive bird. But most Black Swans are just Dirty White ones. They catch us by surprise, but shouldn’t.