When considering financial risks there are only four categories of risks: less than a million dollars, less than a billion, a few trillion, and the black swan, the unpredictable and immeasurable risk.

A black swan risk is where utmost devastations and calamities are the result of a singular and highly improbable cause. For the analysis of black swan risks, the Actionable Knowledge Foundational Institute (AKFI) has developed a new approach to modeling and transforming knowledge into action.

To start we need to look at the 3 existing pillars of sustainability: Social, Economic, and Environmental (SEE), or People, Planet and Prosperity (3P). Together, there are part of CSR (Corporate Social Responsibility), and address the social, economic and environmental needs of shareholders and stockholders. CSR uses well established risk measurements such as ​ESG (Environmental, Social and Governance) and TBL (Three Bottom Lines.)

ESG reporting is now common with 90% of S&P500 companies in the US. In September 2020, the World Economic Forum issued a proposal for a global standardization of 24 core ESG metrics. ​Nilsen estimates that in this year, 2021, sustainable-minded consumers in the U.S. to spend $150 billion on sustainable products.

AKFI starts with the SEE perspectives on ESG and TBL and is adding a fourth perspective of Digitalization, or Digital Transformation (SEED). The Digitalization pillar adds a critical perspective to CSR.

Using input from member companies, the Institute uses a four-step process to rapidly convert knowledge into an actionable set of models and plans. The four steps are:
1. Small group taxonomy
2. Small group brainstorming
3. Rapid ideation and funnel selection
4. Actionable plan, apply, and repeat

About AKFI: a non-profit global institute with the vision and mission of lessening the impact of disasters and pandemics. Together.