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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The Digital Economy’s Cyber Risk Blind Spot Business and critical infrastructure organizations operate in highly regulated environments with high exposure to systemic risk. Bob Ackerman, Forbes, 25 Mar. 2025 Agha says that while the government wants access to the data, building such a backdoor would create a systemic risk. Kevin Williams, CNBC, 18 Mar. 2025 While Hill’s bill emphasizes market innovation and flexibility, Waters’ bill focuses on regulatory rigor and systemic risk management. Tonya M. Evans, Forbes, 13 Mar. 2025 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 See All Example Sentences for systemic risk

Word History

First Known Use

1977, in the meaning defined above

Time Traveler
The first known use of systemic risk was in 1977

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Cite this Entry

“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 1 Apr. 2025.

Legal Definition

systemic risk

noun
sys·​tem·​ic risk sis-ˈte-mik- How to pronounce systemic risk (audio)
: 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
Last Updated: - Updated example sentences
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