<Dt> not exposing oneself to large losses using the barbell strategy </Dt> <Dd> For instance, only buying options (so one can at most lose the premium), not selling them . Many funds have started offering "tail protection" such as the one advocated by Taleb . </Dd> <Dt> performing sensitivity analysis on assumptions </Dt> <Dd> This does not eliminate the risk, but identifies which assumptions are key to conclusions, and thus meriting close scrutiny . </Dd>

Picking up dimes in front of a steam roller