👉 Profit fluid, a term coined by Nassim Nicholas Taleb in his book "The Black Swan," refers to the unpredictable, extreme outcomes that can significantly impact a company's profitability. Unlike typical financial metrics that focus on average or expected returns, profit fluid captures the potential for sudden, large losses or gains that are not accounted for in standard risk assessments. These extreme events, often referred to as "black swans," can arise from unforeseen circumstances such as market crashes, regulatory changes, or technological disruptions. By acknowledging and preparing for the possibility of such extreme outcomes, businesses can better manage their risk profiles and enhance their resilience against unforeseen challenges.
