systemic risk

Definition

Risk that affects an entire financial market or system, and not just specific participants. It is not possible to avoid systemic risk through diversification.

Use systemic risk in a sentence

You need to understand what the systemic risk of any investment is before you decide to take it on fully.

​ Was this Helpful? YES  NO 3 people found this helpful.

It was a systemic risk because it would effect the entire business if there was any kind of failure in it.

​ Was this Helpful? YES  NO 11 people found this helpful.

The systemic risk was significant and unavoidable in the market, all of our competitors shared the same type of risk as well.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
neutral strategy global financial stability report (GFSR)