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
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And as more institutional capital enters the space, this lack of structure is becoming a systemic risk. Zoltan Istvan, MSNBC Newsweek, 4 Aug. 2025 During the 2008 financial crisis, Wall Street's finest analysts missed the systemic risk building under their feet. Tima Bansal, Forbes.com, 18 July 2025 This marks a clear departure from the Biden administration’s more cautious approach, under Acting Comptroller Michael Hsu, who viewed crypto as a potential systemic risk echoing the 2008 financial crisis. Jason Brett, Forbes.com, 11 July 2025 Some caution that the boom, if left unchecked, could morph into the next source of systemic risk. Lee Ying Shan, CNBC, 7 July 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 10 Aug. 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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