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Words of Wisdom from the Author of “The Black Swan” May 14, 2011

Posted by solutionsbconsultants in Uncategorized.
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Implementing these ideas can transform your entire business.

Taleb’s ten principles for a black swan robust world

Taleb enumerates ten principles for building systems that are robust to Black Swan Events:[10]
What is fragile should break early while it is still small. Nothing should ever become Too Big to Fail.
No socialisation of losses and privatisation of gains.
People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.
Counter-balance complexity with simplicity.
Do not give children sticks of dynamite, even if they come with a warning.
Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”.
Do not give an addict more drugs if he has withdrawal pains.
Citizens should not depend on financial assets or fallible “expert” advice for their retirement.
Make an omelette with the broken eggs.
In addition to these ten principles, Taleb also recommends employing both physical and functional redundancy in the design of systems. These two steps can be found in the principles of resilience architecting.

(Reference: Jackson, S. Architecting Resilient Systems: John Wiley & Sons. Hoboken, NJ: 2010.)