The Black-Scholes model provides an important foundation for mathematicalmodels used for pricing options. Myron Scholes won a Nobel prize for this and related work. It has always been recognised that blindly following models exposes the user to unexpectedrisks since they are often at odds with reality. For some, such modelssymbolise the absurdity of much of modern financial structuring. Nicholas Taleb’s Black Swan theoryrefers to a large impact event beyond the realm of normal expectations, andhas come to represent an event, like the credit crunch, that conventional wisdom said could not happen.A White Swan is different.

Air PollutionYou probably experienced pollution – it’s the smogand other contaminants that float in the air webreatheIn some cities around the world, such as LosAngeles, Mexico City and China, you can hear radioor TV alerts like the following :- Alert, today the level of pollution in the air is high- Children and the elderly should not go outside- Those who practice an outdoor sport should not do so- People with asthma should carry their inhalers at all times- The rest should avoid going out, or wear a mask when doingsoParallel crises- Financial crisis, spilling over into theeconomy- Climate crisis- Ecosystem/natural resources crisis –two thirds of our most importantecosystems – like tropical forests, farmland, fresh water and marine