Why does domain hijacking happen and what can be done about it?

As stated in the ICANN Domain Name Hijacking Report, domain name hijacking incidents are commonly the result of flaws in registration and related processes, failure to comply with the transfer policy, and poor administration of domain names by registrars, resellers and registrants. While many recommendations contained in this report were implemented in .aero since its inception and we are not aware of any hijacking in the .aero domain, the risk of hijacking always remains and there are steps each registrant can take to minimise the risk.