Blue sky catastrophe

The "Blue Sky Catastrophe" refers to a concept related to catastrophic risks that are difficult to foresee, plan for, or mitigate. The term combines the idea of a "blue sky," which signifies a clear and optimistic view, with "catastrophe," indicating a sudden and overwhelming disaster. In discussions about risk management, it suggests scenarios where people and organizations may not consider low-probability, high-impact events, leading to inadequate preparation for such occurrences.