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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And that presents a systemic risk to not just Oracle, in particular, but to the tech sector more broadly. Allison Morrow, CNN Money, 11 Sep. 2025 The second function is to regulate systemic risk in financial markets with the goal of promoting stability. Hersh Shefrin, Forbes.com, 8 Sep. 2025 Risks No One's Modeling Many of crypto's greatest innovations paradoxically heighten systemic risk. Mark R. Weaver, MSNBC Newsweek, 27 Aug. 2025 Some caution that the boom, if left unchecked, could morph into the next source of systemic risk. Lee Ying Shan, CNBC, 7 July 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 17 Sep. 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
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