On Moral Hazard and Its Prevention and Control

In the view of neo-systematic economics,moral hazard originated from man's selfish nature.Moral hazard of enterprise managers refer to a business conduct of economic agents to seek for their maximum personal benefits at the expense of the interests of their clients without facing up to the consequence of their conduct.To lesson such moral hazard requires the convergence of the mutual interests of all the parties involved and the diminution of the asymmetrical information shared by both the enterprisers and managers.