Policymakers are therefore faced with the difficult challenge of balancing efforts to manage systemic risks against efforts to ensure that market participants bear the costs of imprudent risk taking ...

There are a few ways to minimize moral hazards. The first is to encourage the risk-taking party to act more responsibly by offering them incentives. The second is to institute policies that ...

Cohen, Daniel, Aiyesha Dey, and Thomas Lys. "Corporate Governance Reform and Executive Incentives: Implications for Investments and Risk-Taking." Contemporary Accounting Research 30, no. 4 (Winter ...