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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Banks compete fiercely across jurisdictions, connected in real time, with systemic risk from terrorism financing and financial crime that no single institution can contain. Shlomit Wagman, Fortune, 30 May 2026 It is widely seen as a source of systemic risk. George Calhoun, Forbes.com, 25 May 2026 The biggest systemic risk in private credit markets comes from the asset-liability mismatch. Krysta Escobar, CNBC, 11 Apr. 2026 Portfolios of private credit facilities are often concentrated, subjecting lenders like CalPERS to systemic risk. Marc Joffe, Oc Register, 9 Apr. 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 Jun. 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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