Definition Of Economic Hazard

Hazards can have economic social and environmental consequences.

Definition of economic hazard. In a financial market there is a risk that the borrower might engage in activities that are undesirable from the lender s point. A hazard is any source of potential damage harm or adverse health effects on something or someone. Safety hazards hazards affecting the safety of individuals usually having an injury or immediate fatality as the consequence of an incident. A hazard is a source of risk this includes any element agent environment or state that has potential to cause a negative outcome.

Lenders knew they could underwrite loans charge a fee to a consumer and then turn around and sell the loan to one of many. Economic disruption or environmental degradation. Economic risk refers to the likelihood that macroeconomic conditions conditions in the whole economy may affect an investment or a company s prospects domestically or abroad. Basically a hazard is the potential for harm or an adverse effect for example to people as health effects to organizations.

Health hazards may cause measurable changes in the body which are generally indicated by the development of signs and symptoms in the exposed persons or non measurable subjective symptoms. It gave birth to the definition of economics as the science of studying human behaviour as a relationship between ends and scarce means that have alternative uses. It arises when both the parties have incomplete information about each other. The following are illustrative examples.

This definition covers a broader scope of hazards than has traditionally been the case in the field of disaster risk reduction and expands the definition of hazard to include processes and activities. The economic risks may include exchange rate fluctuations a shift in government policy or regulations political instability or the introduction of economic sanctions. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. There are many definitions for hazard but the most common definition when talking about workplace health and safety is.

This depends on certain. In this case mortgage companies faced a situation of moral hazard. The initial hazard list was compiled from existing hazard glossaries and terminologies. Moral hazard specifically refers to the risk that exists when two parties lack equal knowledge of actions taken following an existing agreement.