Systemic Risk

From Open Risk Manual


Systemic Risk denotes any Risk Type that is (or may become) pervasive across the entire system being analyzed.


Systemic risk emerges as a negative design feature of systems that are

  • too homogeneous (the same Risk Factor may simultaneously affect large number of entities
  • too interconnected (an initial Risk Event affecting one unit propagates / amplifies to other units)


Issues and Challenges

See Also