The act of taking on more risk because of protection from adverse consequences due to the risk is referred to as a moral hazard problem.

Name: The act of taking on more risk because of protection from adverse consequences due to the risk is referred to as a moral hazard problem.
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Moral hazard occurs when one party engages in riskier behavior because they know another party bears the cost of those risks, often seen in insurance contexts where the insured might take more risks knowing they are covered.

The Act of Taking on More Risk Because of Protection