systemic risk
Definition 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.
Definition 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.
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systemic risk is in the Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
systemic risk appears in the definitions of the following terms:
non-diversifiable risk,
beta,
specific risk,
market maker,
market risk,
risk total,
unsystemic risk,
risk,
CAMELS rating,
principal basis
and
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