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
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This marks a clear departure from the Biden administration’s more cautious approach, under Acting Comptroller Michael Hsu, who viewed crypto as a potential systemic risk echoing the 2008 financial crisis.
—
Jason Brett, Forbes.com, 11 July 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
Other economists have suggested golden shares could be a way to maintain oversight of sectors that pose a systemic risk to the U.S. economy.
—Cecilia Hult, Fortune, 20 June 2025
The Federal Reserve Bank of Boston recently pointed out that private credit could be a systemic risk to the financial system under a severe adverse scenario, which is exactly what the stress tests are supposed to test for.
—Alicia Adamczyk, Fortune, 28 June 2025
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Jason Brett, Forbes.com, 11 July 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
Other economists have suggested golden shares could be a way to maintain oversight of sectors that pose a systemic risk to the U.S. economy.
—Cecilia Hult, Fortune, 20 June 2025
The Federal Reserve Bank of Boston recently pointed out that private credit could be a systemic risk to the financial system under a severe adverse scenario, which is exactly what the stress tests are supposed to test for.
—Alicia Adamczyk, Fortune, 28 June 2025
See All Example Sentences for systemic risk
Cite this Entry
“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 25 Jul. 2025.
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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
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