A moral hazard is when an..
…actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk.
It’s similar to perverse incentives.
A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers.
I have spent the last 6 months working closely with a QA team inside a large financial instutition and have become increasingly skeptical of the value they provide - the development team don’t test as thoroughly as they should because they know that QA are playing backstop.
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