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
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These shifts introduce a systemic risk that is often underestimated. London Business School, Forbes.com, 28 Apr. 2025 In the field of financial stability, all the excitement surrounds prevention, driven by the idealistic impulse that policymakers can eliminate systemic risk. Timothy F. Geithner, Foreign Affairs, 12 Dec. 2016 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 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 20 May. 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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