Friday, 30 March 2012

Moral Hazard: an economic concept we must understand!

I have been reading Vince Cables book on the banking crisis - he talks about the economic term "moral hazard" which is the tendency to take undue risks if the consequential costs of failure or loss are borne by a another party.

MH pretty much explains some of the UK banking industry behaviors which caused much of today's problems.

MH can also apply in our personal and business relationships - where might you be creating such situations?

Ken Thompson (aka The BumbleBee) blogs about bioteams, virtual collaboration and business simulation at