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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However, a recent Federal Reserve report found that private credit poses limited systemic risk.
—
Jamal Hagler, Boston Herald, 15 June 2025
Agency decay — the gradual erosion of human decision-making capabilities — poses a systemic risk as employees become overly dependent on AI recommendations.
—Cornelia C. Walther, Forbes.com, 6 June 2025
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
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Jamal Hagler, Boston Herald, 15 June 2025
Agency decay — the gradual erosion of human decision-making capabilities — poses a systemic risk as employees become overly dependent on AI recommendations.
—Cornelia C. Walther, Forbes.com, 6 June 2025
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
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 1 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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