Moral Hazard only affects an organization when?Group of answer choicesIt doesn’t because everybody else does it too.Increased risky behavior is not taken into account by the risk manager.The risk manager has inadequate insurance.The board of directors or executives managers get caught.

Moral hazard is an important concern of insurance arrangements because the existence ofinsuranceA) provides increased incentives for risk taking.B) is a hindrance to efficient risk taking.C) causes the private cost of the insured activity to increase.D) creates an adverse selection problem but no moral hazard problem

Which of the following best describes the concept of "moral hazard" in insurance?a)The risk of a catastrophic event occurringb)The possibility of fraudulent claims being madec)The degree of uncertainty associated with a particular riskd)The tendency of insured parties to behave more recklessly or negligently

What is “moral hazard” problem? How does it lead toinefficient allocation of resources? Suggest remedial measures.

The purpose of risk planning is ....Group of answer choicesincrease the probability and impact of positive eventsNo answer text provided.Bothdecrease the probability and impact of negative events

Can a risk be positive? Group of answer choicesYes. Risk can be either positive or negative.No. All risks are detrimental to the project.Yes. Risk only has positive impact.No. Risk only has negative impact