Tag: Risk Management
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Lindy Effect
Originating from patterns noted at Lindy’s restaurant in New York, the Lindy Effect theorizes that the future lifespan of enduring entities, such as ideas, correlates with their current age. This concept offers a perspective on understanding persistence across various domains, from literature to technology.
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NET – No Earlier Than
NET, or “No Earlier Than,” is a time constraint used to define the earliest start date for tasks in various domains like project management and aerospace. It ensures orderly progress and efficient use of resources, with deviations potentially leading to delays and increased costs.
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Pecunia Non Olet
“Pecunia Non Olet,” a Roman maxim meaning “Money does not stink,” delves into the ethical ambiguity surrounding the origins of wealth. It has legal, economic, and social ramifications, and remains relevant in modern debates from digital currency to ethical investing.
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Gall’s Law
Gall’s Law posits that effective complex systems evolve from simpler, functional predecessors. Widely applied in fields like engineering and organizational design, the principle advocates for an iterative development process that starts with basic, operational systems.
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Institutional Entropy
Institutional entropy describes the gradual decline in organizational efficiency and purpose over time. Influenced by both internal structures and external forces, the concept highlights the inevitable challenges that institutions face in maintaining order and achieving objectives.
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Shackleton Expedition
The 1914-1917 Shackleton Expedition aimed to cross Antarctica. However, their vessel, the Endurance, succumbed to ice. Stranded, all 28 crew members endured, navigating to South Georgia Island and ensuring their collective rescue, showcasing unparalleled resilience and leadership.
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FU Money
FU Money represents an individual’s financial threshold for maintaining their lifestyle without employment-derived income. This sum, varying per person, is influenced by living costs, investment returns, and personal choices. Attainment of FU Money offers enhanced freedom, reduced stress, and facilitates pursuit of individual passions or ideals.
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Fat Tail Events
Fat Tail Events denote uncommon, large deviations from averages, often linked with significant financial shifts. These are characterized by a greater likelihood of extreme occurrences than typical predictions suggest. Their profound impact, as witnessed in events like the 2008 financial crisis, underscores the importance of understanding and managing such phenomena.
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Expected Value
Expected value, a cornerstone of statistics and probability, indicates the average outcome of repeated events. Despite its ubiquity in fields such as economics and decision-making, it doesn’t predict individual outcomes and can be skewed by outliers. Its broad applications necessitate considering ethical implications due to potential unequal impacts.