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

In April 2026, the Bank of England’s Financial Policy Committee found that advanced AI had not yet been adopted in a way that presented systemic risk but warned that risks could increase rapidly as deployment expands. — Swati Deepak Kumar, Forbes.com, 6 Oct. 2026

Article 55 of the AI Act requires providers of general-purpose AI models deemed to pose systemic risk to report serious incidents to the AI Office within 15 days, and the most severe incidents within two days. — Beatrice Nolan, Fortune, 7 Sep. 2026

Where traditional operators see systemic risk, Pallak Seth sees a structural opportunity to reshape the global fashion ecosystem. — Arthur Zaczkiewicz, Footwear News, 12 Aug. 2026

When harm is assessed in isolation rather than in aggregate, systemic risk can remain hidden. — Nisha Narayanan, STAT, 5 June 2026

Word History

First Known Use

1977, in the meaning defined above

Rhymes for systemic risk

• videodisc
• basilisk
• obelisk
• bisque
• brisk
• disc
• disk
• fisc
• fisk
• frisk
• whisk

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