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 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 Again, the idea that nobody was regulating systemic risk prior to the creation of FSOC, in a holistic way or any other way, is undeniably false. Norbert Michel, Forbes, 2 Oct. 2024 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

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 21 Jan. 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
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!