Ergodicity, a term I had never heard before, threatens to undermine the very foundations of economics and risk analysis as it exposes flaws in the fundamental assumptions of these fields.
Despite the new garnered attention, the concept of ergodicity is rather old and has been applied commonly in the fields of mathematics and physics. Unsurprising is then that this concept is brought to the limelight, not by an economist but by Ole Peters, a theoretical physicist, and Nassim Nicholas Taleb a distinguished Professor of Risk Engineering and popular author.
So how does ergodicity work, and why could it revolutionize economics?
In May of this year, a cyberattack on the largest pipeline in the United States made global headlines. The supply of various petroleum products came to a standstill for several weeks. Pictures went around the world showing how fuels were filled and transported in a wide variety of containers. Even plastic bags were filled with the highly flammable liquids for fear of not having access to fuels for a longer period of time.
Accelerated by the Corona crisis, digitization in Germany is on the rise. But as digitization increases, so do the potential risks in IT security. As in the USA, critical infrastructures in a wide range of sectors in Germany have long been digitized. For years, there have also been repeated attacks on critical infrastructures in Germany. But is Germany prepared for the growing threat? The question is whether Germany is heading for major problems if critical infrastructure such as the energy and healthcare systems or the water supply are not adequately protected.
This article takes a look at attacks on critical infrastructure in Germany. What has happened so far? Is Germany prepared for attacks? Who helps when being attacked? And what needs to change?