Moral hazard at work corresponds to the possibility of changing an individual's behavior in accordance with an economic transaction. May be encouraged by seeking individual benefits.
How to reduce moral hazard
It is necessary to adopt signs, that is, measures that increase control over economic transactions, such as, for example, when hiring new employees, the company asking for references and professional experience.
Therefore, moral hazard occurs when there is asymmetric information under some situation, and it can generate conflicts, fraud and disadvantages in the organizational environment, and should be minimized with the increase of the security protocol.
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