THE MINI-CERTIFICATE IN REAL WORLD RISK (TAKING) OR HOW TO MAKE DECISIONS UNDER UNCERTAINTY

In February 2019, I was given the unique opportunity to participate in the RWRI course on Real World Risk, which was organized by Nassim Taleb in New York City, and acquire the mini certificate in Real World Risk (Risk taking not risk management, decision making under uncertainty).

You can find more information on the program and the course itself, which I strongly recommend, here. I have learnt more about risks in five days than in the last ten years while covering global risks and global trends for the public sector.

My takeaways from RWRI 1o:

1) Stick to reality

2) There’s always a sucker & suckee; make sure you won’t be squeezed

3) Complex structures are formed by repetition of simple rules

4) Complex problems require simple solutions

5) If it makes sense, don’t do it

6) Don’t control people, empower them.

Furthermore, Tanner Lund, who was one of the participants in the course, has taken the time to write a summary of each of the five days of the course.

 Part 1: We Don’t Know Nothin’

Part 2: Complex Systems Need Stressors

Part 3: Representative Agents

Part 4: Let’s Get Extreme

Part 5: Options and Cheesecake

To conclude with a quote by Nassim Taleb:

"In life, you’re either the borrower or borrowee; the creditor or creditee; the f*cker or the f*ckee. Make sure that you’re not the f*ckee by being convex & eliminating the risk of ruin."