Chapter 59

Applying the Test: Real-World Examples

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Let's see how the brittleness test reveals hidden fragilities across different domains:

Example 1: Traditional Retail Business

Sarah's boutique clothing store seemed robust: - Component Mapping: Physical store, online presence, loyal customer base, unique product line - Dependency Tracing: Foot traffic, shipping systems, disposable income, fashion trends - Single Point Identification: Physical location dependence, discretionary spending requirement - Cascade Scenario: Location restriction → no foot traffic → no sales → inventory buildup → cash crisis - Brittleness Score: Location (4x5=20), Discretionary spending (3x4=12)

The test revealed extreme location brittleness despite online presence. Sarah's response: transitioning to appointment-only styling services that justified travel and commanded premium prices.

Example 2: Professional Services Career

Michael's consulting career appeared solid: - Component Mapping: Industry expertise, client relationships, reputation, methodology - Dependency Tracing: Industry health, travel ability, in-person meetings, corporate budgets - Single Point Identification: In-person requirement, single industry focus - Cascade Scenario: Travel restrictions → no client meetings → no new contracts → income stop - Brittleness Score: Travel requirement (4x5=20), Industry concentration (3x5=15)

The test exposed dangerous brittleness in delivery method and industry concentration. Michael's pivot: developing remote consulting capabilities and expanding to adjacent industries before crisis hit.

Example 3: Investment Portfolio

Angela's "diversified" portfolio included: - Component Mapping: Tech stocks, real estate, bonds, commodity ETFs - Dependency Tracing: Economic growth, credit availability, interest rates, global trade - Single Point Identification: Credit system functioning, global supply chains - Cascade Scenario: Credit freeze → real estate illiquid, stocks crash, bonds stressed - Brittleness Score: Credit dependence (3x5=15), Supply chain (4x4=16)

Despite surface diversification, the test revealed systemic brittleness to credit and trade disruption. Angela's adjustment: adding truly uncorrelated assets and building portfolio antifragility.