So-called ‘black swan’ theory was developed by author Nassim Nicholas Taleb to describe rare events that have an outsised, often negative impact and now the Bank of International Settlement is warning of a ‘green swan’ event linked to climate change that could have wide reaching consequences for the global financial system [File: Sergio Perez/Reuters] Utter the term “black swan” in financial circles and it will conjure images of an economic catastrophe triggered by a rare event people should have seen coming, if only they had opened their eyes. On Monday, the Bank for International Settlements (BIS) published its riff on that theory. In a paper titled ” The green swan ” the Basel-based institution warns climate change could unleash “potentially extremely financially disruptive events,” that could trigger the next global financial crisis. To contain the fallout, the BIS is urging global coordination among central banks, regulators and supervisors including […]