Anticipating the Black Swan

The term, Black Swan, is used to depict a financial catastrophic downturn for which no one is prepared. (Black swans were once considered non-existent, until they were found to exist.) So, when such once-in-a-lifetime occurrences do occur, financial managers attempt to be ready.

Such as with use of prearranged derivatives. Such attempts are usually not more than luck in timing, if at all successful. In fact, lots of hindsight often go into commentary as to how to counter the next financial meltdown after a fiasco occurs.

I doubt the efficacy of any attempt at risk control in advance when traders use highly leveraged speculative instruments.