Systemic Risk
/ˌsɪstɛmɪk rɪsk/
Definitions
- (n.) The risk of collapse or significant dysfunction within an entire financial system or market, as opposed to risks affecting individual entities.
Regulators implemented new policies to mitigate systemic risk after the financial crisis.
Forms
- systemic risk
Related terms
See also
Commentary
Often central to financial regulatory law, systemic risk emphasizes interconnectedness; definitions may vary slightly depending on jurisdiction and financial context.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.