agency risk

Agency Risk

The risk that the management of a company will use its authority to benefit itself rather than shareholder. For instance, managers may elect to pay themselves higher salaries, which increases overhead, rather than to pay out extra profits as dividends. In a more sinister example, managers may steal the business' money.

agency risk

The possibility a firm's managers will not act in the best interest of its stockholders. For example, if managers attempt to ensure their job tenure by making low-risk investment decisions, such decisions may penalize the firm's profitability and the stockholders' return. Likewise, managers may spend the firm's money to benefit themselves rather than stockholders.
References in periodicals archive ?
Captives can also provide public agency risk managers with peace of mind that their funding sources will not be diverted to other agency priorities, because captives are regulated entities that must maintain minimal levels of funding in order to stay compliant.
The pros and cons of public agency captives
They worked with the local Multi Agency Risk Assessment Conference (MARAC) to reduce a consistently high repeat victimisation rate of over 50% - set against a national benchmark of 40% for very high risk cases.
Abuse charity in line for national award
We hold a monthly Multi Agency Risk Assessment Conference (MAREC) which involves North Wales Police, Flintshire County Council, Education, North Wales Probation, Women's Aid, Hafan Cymru, Health Services, Victim Support and North Wales Fire and Rescue.
Domestic violence cases involving teen girls on rise; Details revealed during Commissioner's unit visit
the leading provider of risk management and insurance software to the public sector, announced today that it will participate for the fourth consecutive year as an exhibitor in the 41st Annual Public Agency Risk Managers Association (PARMA) Conference.
EXIGIS to Exhibit at 2015 Annual PARMA Risk Managers Association Conference
All registered sex offenders are subject to MAPPA (multi agency public protection arrangements) and as such a thorough risk assessment is carried out and comprehensive multi agency risk management plans put in place.
Sex offender leaflet mailed; Posted letter revealed whereabouts
Region 7 spokesman Christopher Whitley said agency risk assessors are studying the results of soil sampling from 11 public parks in the county to determine next steps for addressing lead contamination at those locations.
EPA nears completion of efforts at schools in St. Francis county
Part of agency risk management is the agency's purchase of its own professional liability insurance, but there is much more involved.
Quality control: thinking of cutting corners on your E&O coverage to save your agency money? there's a better way. learn how to use agency risk management to save your business real bottom-line dollars--and improve operations in the process
An agreement between the Environmental Protection Agency and Bayer comes amid concerns raised by a new agency risk assessment that focused on aldicarb's effects on young children and infants who may be exposed when consuming citrus and other crops sprayed with the insecticide.
Bayer to phase out aldicarb insecticide by 2018
Supt Andronov said a Multi Agency Risk Assessment Conference was held monthly comprising of police, social services and housing where high risk cases are discussed and a programme of measures tailored to deal with each one.
Home violence zero tolerance; CRIME: Police in fresh campaign targeting domestic abuse
The money will allow the 40 Multi Agency Risk Assessment Conferences (Maracs) that have already been set up to continue operating, and also to support training for a further 60 by March next year.
Funding to combat domestic violence
The Multi Agency Risk Assessment Conference (Marac) was launched at the Textile Centre in Huddersfield yesterday.
Action on violence in home
The last Environmental Protection Agency risk assessment for BPA was conducted in the 1980s.
Baby bottles found harmful
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