Difference between revisions of "Systemic Risk"
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Contents
Definition
Systemic Risk denotes any Risk Type that is (or may become) pervasive across the entire system being analyzed
Causes
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)
Examples
- Various types of financial Contagion Risk (encompassing markets and credit systems)
- Climate-Related Risk
- Pandemic Risk
- Increasingly considerations also around Systemic Cyber Risk
