systemic risk

Language: en

📖 Definitions

  1. The risk of collapse of an entire financial system or market, as opposed to risk associated with an individual entity, group, or isolated part of a system.; A situation where the failure of one component triggers a chain reaction that threatens the stability of the whole system.

💬 Examples

  1. This aggressive intervention marks a turning point in the country's approach to managing systemic risk and preserving monetary stability amidst growing market volatility.

  2. Regulators are increasingly focused on identifying and mitigating systemic risk before it escalates into a full-blown crisis.