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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Cause a 30–50% drawdown in the S&P 500, as systemic risk re-enters the conversation.
—
Trefis Team, Forbes.com, 19 May 2025
The world’s leading central banks must quickly reverse course and limit investments in the fossil fuel industry in order to avoid further increasing the systemic risk that climate change poses to the financial system.
—Justin Guay, Foreign Affairs, 3 July 2020
These shifts introduce a systemic risk that is often underestimated.
—London Business School, Forbes.com, 28 Apr. 2025
In the field of financial stability, all the excitement surrounds prevention, driven by the idealistic impulse that policymakers can eliminate systemic risk.
—Timothy F. Geithner, Foreign Affairs, 12 Dec. 2016
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Trefis Team, Forbes.com, 19 May 2025
The world’s leading central banks must quickly reverse course and limit investments in the fossil fuel industry in order to avoid further increasing the systemic risk that climate change poses to the financial system.
—Justin Guay, Foreign Affairs, 3 July 2020
These shifts introduce a systemic risk that is often underestimated.
—London Business School, Forbes.com, 28 Apr. 2025
In the field of financial stability, all the excitement surrounds prevention, driven by the idealistic impulse that policymakers can eliminate systemic risk.
—Timothy F. Geithner, Foreign Affairs, 12 Dec. 2016
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 3 Jun. 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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