Biz LINGO: What is a "moral hazard"?

OK, we admit it. Sometimes the business world gets a bit bogged down in jargon. But this is important stuff, so we want to help clear up any confusion.

In our new series, LINGO (the language of business), McCombs School of Business faculty offer bite-sized explanations of business vocabulary, sure to help you feel more informed.

To kick things off, economist and McCombs senior lecturer of finance Michael Brandl explains "moral hazard," a phrase that Google-trended into the stratosphere as the financial crisis unfolded.

Watch Brandl's explanation of "moral hazard" on McCombs' YouTube channel.

This post originally appeared in the McCombs Today blog on Feb. 16.