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Key Role of Financial Sector in Economic Growth
Key Role of Financial Sector in Economic Growth

... Facts, Figures, and How to Address the Weaknesses ...
Evolution of Institutional Investment Portfolios Evolution of
Evolution of Institutional Investment Portfolios Evolution of

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206 kb PowerPoint presentation
206 kb PowerPoint presentation

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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as ""financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries"". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as ""systematic risk"".
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