What is “Black Swan” theory?

Black Swan theory is referred to an unforeseen event which hits hard when it comes.

Since this is an unpredictable event hence businesses need to be well prepared for such events with the necessary contingencies in place.

Please refer to the following link(Source wikipedia) to know more about this effect.

https://en.wikipedia.org/wiki/Black_swan_theory

Jim Collins makes a mention of this in his book titled “Great By Choice”