systemic risk

Definitions (2)
Related Terms
1. General: Probability of loss or failure common to all members of a class or group or to an entire system. Erroneously also called systematic risk.
2. Investing and trading: Probability of loss common to all businesses and investment opportunities, and inherent in all dealings in a market. Also called market risk, it cannot be circumvented or eliminated by portfolio diversification but may be reduced by hedging. In stock markets, systemic risk is measured by beta-coefficient.

Use 'systemic risk' in a Sentence

You need to be able to accurately predict the systemic risk and decide if a certain path is the correct one.
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We could not assume such a systemic risk because it could actually end up causing our place to shut down.
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You need to understand what all of the systemic risk of a project is and decide if it is totally worth pursuing.
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