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

Wall Street’s years-long bet on AI is facing a severe test on Thursday, as investors might begin to view OpenAI–and generative AI in general—not as a catalyst for continuous growth, but as a source of systemic risk for Big Tech. —Eva Roytburg, Fortune, 29 Jan. 2026

Clear baselines for transparency, accountability, and autonomous system oversight help align incentives, reduce systemic risk, and build trust across markets. —CBS News, 21 Jan. 2026

The current depletion among top-tier talent is a systemic risk. —Ginger Gentile, Forbes.com, 21 Jan. 2026

But to this day, the SCMaglev still faces approval roadblocks – from prefecture vetoes and environmental blowback, to cost concerns and an overall systemic risk aversion to name a few – preventing it from being completed and opening to the public. —New Atlas, 27 Dec. 2025

Word History

First Known Use

1977, in the meaning defined above

Rhymes for systemic risk

• videodisc
• basilisk
• bisque
• brisk
• disc
• disk
• fisc
• fisk
• frisk
• whisk

Legal Definition

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