# Know What You Ignore: The Hidden Implications of Unseen Factors In *Skin in the Game*, Nassim Nicholas Taleb introduces the concept of 'Know What You Ignore,' emphasizing the importance of understanding the unseen factors that can have a significant impact on our decisions and their outcomes. By focusing on what we know, we often overlook the profound consequences of what we ignore. [](https://upload.wikimedia.org/wikipedia/commons/9/9b/Taleb_mug.JPG) *Nassim Nicholas Taleb* ## Introducing 'Know What You Ignore' Taleb explains the concept of 'Know What You Ignore' by contrasting it with 'Know What You Know': * **Know What You Know (KWYK):** Familiarity with what we have encountered, observed, or learned. * **Know What You Ignore (KWYI):** Awareness of the unknowns, the invisible, and the unconsidered factors that influence outcomes. [](https://nova-live-content.s3.eu-west-2.amazonaws.com/public/infographic-2db245e2-f0e9-452b-8b20-221628a42077.jpg) *Know What You Know vs Know What You Ignore* Ignorance, in the context of KWYI, isn't about being unaware of facts but about the impact of the unknown on our decision-making. As college students, understanding KWYI helps us account for uncertainties and improve our judgment by acknowledging the lurking factors that might sway outcomes. ## Practical Applications of 'Know What You Ignore' ### Case Study 1: Financial Decision-Making Taleb uses the financial industry as an example, highlighting how bankers and investors give immense attention to risk management (KWYK) but often dismiss the influence of rare, extreme events on their portfolios (KWYI). These 'Black Swan' events—coined by Taleb himself—can cause significant financial instability. Consider the 2008 financial crisis. Before the collapse, financial institutions had sophisticated models to measure risks related to real estate, equities, and derivatives (KWYK). However, few had adequately considered the potential rare, cascading effects of a housing market bubble burst (KWYI). The result was a global financial crisis. [](https://flowingdata.com/wp-content/uploads/2009/03/aler-recession-fullsize-545x407.jpg) *2008 Financial Crisis* As college students, you can apply the KWYI lesson to your personal finances. Be aware that KWYI can impact your: * Investment choices: Stocks that seem secure might be connected to fragile supply chains. * Budgeting decisions: Unforeseen, high-cost events like medical emergencies might happen. ### Case Study 2: COVID-19 Pandemic and Public Health The COVID-19 pandemic offers another real-world illustration of the 'Know What You Ignore' concept in public health. Predictive models (KWYK) and medical countermeasures were put forth, but the interdependent nature of global health systems, governance mechanisms, and social behaviors (KWYI) generated innumerable rippling effects, leading to both positive (e.g., scientific advancements, community resilience) and negative (e.g., mental health issues, economic decline) consequences. As college students, you should anticipate KWYI in public healthcare settings: * Anticipate second-order effects of treatments and vaccines: Consider mental health impacts or lingering side effects (KWYI). * Account for the fragility of global systems: Recognize that disease or crises can unfurl swiftly, sometimes seemingly unrelated to any specific action or circumstance (KWYI). [](https://www.idea.int/sites/default/files/infographics/Impact%20May.png) *Impact of COVID-19 on Global Health* ## Conclusion 'Know What You Ignore' emphasizes the significance of incorporating the impact of the known unknowns into our decision-making process. By better understanding the potential forces at play—even those beyond our immediate attention—we can improve the robustness of our judgments, plans, and actions. ### Further Exploration: Fooled by Randomness To strengthen your understanding of KWYI, consider reading Taleb's prior work, Fooled by Randomness. This book discusses the role of randomness in decision-making and serves as a complementary resource to Skin in the Game. Incorporating the 'Know What You Ignore' concept can transform our outlook on various aspects of life, from academic pursuits to professional growth and personal development. By examining the world with heightened sensitivity to unseen factors, we become not only more knowledgeable but, more importantly, wiser.