systemic risk

noun

Definition of systemic risk

: 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 Some officials fear these digital tokens could become a systemic risk, threatening the wider financial system. New York Times, 24 Sep. 2021 Some officials fear these digital tokens could become a systemic risk, threatening the wider financial system. New York Times, 24 Sep. 2021 In other words, the only systemic risk related to Evergrande is a bailout of Evergrande. John Tamny, Forbes, 26 Sep. 2021 Meanwhile the celebrated GE Capital became a cookie jar to smooth quarterly earnings with little transparency about systemic risk which became more apparent in a new regulatory climate. Fortune, 12 Nov. 2021 Mainland financial media has been very quiet on Evergrande which is likely driven by the local opinion Evergrande will not be allowed to become a systemic risk. Brendan Ahern, Forbes, 5 Oct. 2021 Some officials fear these digital tokens could become a systemic risk, threatening the wider financial system. New York Times, 24 Sep. 2021 Calling climate change a systemic risk to the financial system, the White House will release a report Friday outlining its strategy for new rules that could affect investment disclosures, insurance policies and home loans. Paul Kiernan, WSJ, 15 Oct. 2021 Those in favor of regulating family office operations argue that this reveals the extent to which family offices contribute to systemic risk because of their size, secrecy and growing interest in speculative investments. Francois Botha, Forbes, 15 Oct. 2021

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'systemic risk.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of systemic risk

1977, in the meaning defined above

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Time Traveler for systemic risk

Time Traveler

The first known use of systemic risk was in 1977

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Dictionary Entries Near systemic risk

systemic lupus erythematosus

systemic risk

systemist

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Last Updated

24 Dec 2021

Cite this Entry

“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 20 Jan. 2022.

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More Definitions for systemic risk

systemic risk

noun
sys·​tem·​ic risk | \ sis-ˈte-mik- How to pronounce systemic risk (audio) \

Legal Definition of systemic risk

: 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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