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.
Physician burnout should be treated as a systemic risk factor affecting patient safety and health care capacity, warranting regulatory attention aimed at reducing administrative burden. Sreedhar Potarazu, Baltimore Sun, 30 Mar. 2026 Andersen said that while the agency is continuing to focus on cyberthreats, what has been scaled back or paused is the work to reduce systemic risk over time, make proactive assessments, coordinate planning, engage partners and strategic initiatives. Suzanne Gamboa, NBC news, 25 Mar. 2026 Some have argued that the company’s enormous size creates a systemic risk and has given it excessive influence over corporate governance through proxy votes. Bydebbie Carlson, Encyclopedia Britannica, 24 Mar. 2026 For investors who view gold primarily as a hedge against systemic risk or currency instability, that distinction can matter. Angelica Leicht, CBS News, 5 Mar. 2026 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 5 Apr. 2026.

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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