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Mental Model

Asymmetric Risk

AR
Business & Strategy

all risks are equal. Some decisions carry small downside with enormous upside; others carry catastrophic downside with modest upside. The shape of the risk matters more than its probability.

The core idea

all risks are equal. Some decisions carry small downside with enormous upside; others carry catastrophic downside with modest upside. The shape of the risk matters more than its probability.

Connected