Extreme risk

Extreme risk typically refers to situations, actions, or outcomes that have the potential for significant adverse consequences, often with a low probability but very high impact. It is commonly discussed in fields such as finance, security, health, and environmental science. Here are a few contexts in which extreme risk might be analyzed: 1. **Finance and Investment**: In finance, extreme risks may involve rare but catastrophic events that can lead to substantial losses, such as market crashes or natural disasters severely affecting asset values.