This is the best risk management rule ever: If you have the upside, you have to keep the downside.

Taleb posted this on his facebook wall, which is relevant to the video above:
Hammurabi’s code, ~3800 years ago, removed the agency problem as a condition for transaction: “If a builder builds a house and the house collapses and causes the death of the owner – the builder shall be put to death. If it causes the death of the son of the owner , a son of that builder shall be put to death.”Everything in past 100 years has been to shield managers from liabilities. Think of Fukushima.

Nassim Taleb is the author of The Black Swan, Fooled By Randomness, and most recently, The Bed of Procrustes.

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