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Chairman`s Letter 2005 - Plymouth Rock Assurance
Chairman`s Letter 2005 - Plymouth Rock Assurance

... is a no complacency zone” for us. He and Jim Tignanelli are an exceptionally strong team. Pilgrim Insurance is the eldest, and smallest, sister of our three insurance management companies. That doesn’t make it unappreciated, however. In 2005, it contributed $3 million to the overall bottom line, wit ...
Chapter 8 - McGraw Hill Higher Education
Chapter 8 - McGraw Hill Higher Education

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Governance, Transparency and Good Portfolio Management
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Regulating Systemic Risk - NYU Stern School of Business
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an approach to determining the probability of default
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Moral hazard

In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place.Moral hazard occurs under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk. More broadly, moral hazard occurs when the party with more information about its actions or intentions has a tendency or incentive to behave inappropriately from the perspective of the party with less information.Moral hazard also arises in a principal–agent problem, where one party, called an agent, acts on behalf of another party, called the principal. The agent usually has more information about his or her actions or intentions than the principal does, because the principal usually cannot completely monitor the agent. The agent may have an incentive to act inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned.
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