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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
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 Our portfolio continues to yield competitive returns, while reducing exposure to systemic risk that comes from over- concentration in status-quo investment circles. Rochelle Witharana, Fortune, 2 Dec. 2025 Under current financial conditions, this won't raise systemic risk. Lucy Notarantonio, MSNBC Newsweek, 14 Nov. 2025 Yet the costs of that systemic risk were borne disproportionately by those least able to absorb them. Ugo Troiano, Oc Register, 25 Oct. 2025 See All Example Sentences for systemic risk

Word History

First Known Use

1977, in the meaning defined above

Time Traveler
The first known use of systemic risk was in 1977

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Cite this Entry

“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 31 Dec. 2025.

Legal Definition

systemic risk

noun
sys·​tem·​ic risk sis-ˈte-mik- How to pronounce systemic risk (audio)
: 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
Last Updated: - Updated example sentences
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