Guarding against negative Black Swans

Black Swans, as you’ll know if you’ve read the book, are high impact low probability events that we don’t really foresee because, well, they’re low probability events, right?

But then, it isn’t *that* difficult to spot some of these Black Swans in daily life. And just as important, to do something about them. Within a day after reading the book, I noticed quite a few areas that I could make Black Swan proof:

Automobile crashes: Wear a helmet/seat belt. Sure, the odds of crashing are small, but when you do the odds are it’ll be dangerous.
ATM machine failures: Don’t wait till the morning of a journey to draw money. Once, an ATM swallowed up my card with painful consequences. Now, by going to an ATM the day before traveling, I can always borrow from a friend in the event of the ATM going bonk.
Pickpockets: Keep your credit cards in different pockets. Keep money in 3 different places on you – some in a bag, some in wallet, some in a shirt. Also, take cheques along on journeys.

If you notice, in each of the above, the cost of protection is very small compared to the loss itself. Therefore the behavior change required to guard against these events is relatively easy, provided you’re aware of the need to take steps.