The article explores how the incentives given to money managers affect their willingness to take risks. The researchers create a model where managers can control the riskiness of their portfolios, which is different from previous studies. They find that the problem of managers taking too much risk involves finding the right balance of incentives. In short-term situations, a bonus contract can work well, but in longer periods, there is no perfect solution. The researchers use numerical approximations to understand the best possible contract in these cases.