What is a Moral Hazard problem?

A Moral Hazard problem is a concept in economics that refers to a situation where one party, typically a decision-maker or agent, is able to take risks because it does not have to bear the full consequences of those risks. This arises when there is a separation between the decision-making authority and the consequences of those decisions. In other words, moral hazard occurs when individuals or entities are insulated from the negative outcomes of their actions, leading them to behave in a riskier manner than they otherwise would if they had to bear the full ______ _________ ________ _________ _______ __________ ________ _______ _________.
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