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.
"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.
New York, NY, January 15, 2015 --(PR.com)-- EXIGIS, LLC., 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.
Merseyside Police, Merseyside Probation Trust and partners who sat on three MARACs (Multi Agency Risk Assessment Conferences) - panels set up to protect high-risk victims of domestic abuse - came under fire.
"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.
Agency risk can be minimized as auditable site visit records contain GPS, time, date, and even photographic data.
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.
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.
EPA had originally planned a new proposal for February 2011 but a recent agency risk assessment found that lowering the daily and annual standard could reduce mortality risk by nearly 90%.
Recommendation: To help SSA monitor progress and evaluate individual Plan initiatives' effect on the hearings-level backlog, inform its decisions about resource allocations for eliminating this backlog, and minimize adverse effects of the Plan's implementation, the Commissioner of the Social Security Administration should move forward with formalizing agency risk assessments associated with the Plan's implementation, including assessing both risks that would hinder the Plan's success and risks that could cause adverse effects or trade-offs related to hearings-level performance and other SSA operations, along with mitigating strategies.
administration of what role OMB should play regarding agency risk
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