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systemic risk
noun
: the risk that the failure of one financial institution (such as a bank) could cause other interconnected institutions to fail and harm the economy as a whole
Examples of systemic risk in a Sentence
Recent Examples on the Web
This energy crisis represents Europe’s greatest systemic risk right now, both economically and politically—more so even than a potential recession, which is also driven mainly by the disruption to energy markets.
—Ben McWilliams, Foreign Affairs, 8 Aug. 2022
The penalties for being a boardroom laggard in digital, cybersecurity and systemic risk oversight are expanding and increasing.
—Bob Zukis, Forbes, 9 Jan. 2025
The bottom line: No one has yet come up with a plan that extracts the GSEs from government control, repays Treasury what it's owed, makes sure the GSEs pose no systemic risk to the financial system, and prevents mortgage rates from rising.
—Felix Salmon, Axios, 6 Jan. 2025
As the economy expands, Fink said corporate earnings will do well and despite assets valuations and some geopolitical issues, the market isn’t facing any real systemic risk.
—Bloomberg, Orange County Register, 2 Oct. 2024
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Word History
First Known Use
1977, in the meaning defined above
Dictionary Entries Near systemic risk
Cite this Entry
“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 30 Jan. 2025.
Legal Definition
systemic risk
noun
sys·tem·ic risk
sis-ˈte-mik-
: the risk that the failure of one financial institution (as a bank) could cause other interconnected institutions to fail and harm the economy as a whole
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