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What does moral hazard mean?

Looking for the meaning or definition of the word moral hazard? Here's what it means.

Noun
  1. (economics) The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
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It also minimizes moral hazard, by centralizing negotiations over fee structures, and eliminating the collective action problem in enforcement.
When this moral hazard is present, credit flows rapidly into inelastically supplied assets, such as real estate.
For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.
This is, of course, deeply morally unsatisfying, and it raises real questions about moral hazard.
The pattern of bailouts since 1995 has distorted the operation of financial markets by creating moral hazard.
We are using IMF as shorthand for the entire grouping of moral hazard intensifiers we listed at the outset!

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