Definitions for "systemic risk"
Related Terms:
Operational risk, Unsystematic risk, Business risk, Specific risk, Risk averse, Pure risk, Financial risk, Risk aversion, Systematic risk, Risk-averse, Risk profile, Speculative risk, Exposure, Risk , Financial risk management, Diversifiable risk, Nondiversifiable risk, Risk matrix, Execution risk, High risk, Capital risk, Residual risk, Principal risk, Country risk, Political risk, Hpr, Event risk, Acceptable risk, Risk management, Risk/return trade-off, Risk communication, Total risk, Highly protected risk, Risks, Risk management, Risk , Risk-based capital, Risk premium, At risk, Preferred risk, Impaired risk, Transfer risk, Commercial risk, Liquidity risk, Market risk, Low risk, Risk reduction, Risk avoidance, Investment risk
Risk that affects an entire financial market or system, and not just specific...
The risk associated with a change in the overall financial system.
The risk that a market crisis places on the financial system as a whole.
The risk of failure of the financial system or an economy, as opposed to just the risk of failure of one corporation.... more on: Systemic risk
a risk faced by a system, in contrast to a specific risk or unique risk
The risk that an event may trigger financial losses and/or lack of confidence in a significant part of the financial system and thus potentially threaten financial stability. Events leading to systemic risk may occur suddenly and unexpectedly, or the risk builds over time in case of insufficient regulation, etc.
The risk of a portfolio after all unique risk has been diversified away. Systemic risks may arise from common driving factors (for example, market and economic factors, natural disasters, or war) and can influence the whole market's well being. (also systematic risk)
Risk which threatens an entire financial system.
The risk of having the failure of one participant in the financial system leads to failure of other participants and endangers the entire financial system. In other words, the systemic risk is the risk that the failure of a payments system participant that is unable to meet its obligations at the required time could lead to the inability of other participants to meet their own obligations at the appropriate time.
Market risk due to price fluctuations which cannot be eliminated by diversification.
the risk that the inability of one situation to meet its obligations when due will cause other institutions to be unable to meet their obligations when due.
The risk that the failure of a major market participant may endanger the overall stability of the international financial system.
The risk associated with the general health or structure of the financial system. It occurs as a result of the system's ability to handle large quantities of political market, credit, or settlement risk. A good example of systemic risk was the ‘contagion effect' of the Asian financial crisis of 1997-1998.
Systemic risk describes the likelihood of the collapse of a financial system, such as a general stock market crash or a joint breakdown of the banking system. As such, it is a type of "aggregate risk" as opposed to "idiosyncratic risk", which is specific to individual stocks or banks. Systemic risk should also be carefully distinguished from Non-systemic risk, which describes risks which the whole economy faces such as business cycles or wars.