Difference between revisions of "Systemic Risk"
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== Definition == | == Definition == | ||
| − | '''Systemic Risk''' denotes any [[Risk Type]] that is (or may become) pervasive across the entire system being analyzed | + | '''Systemic Risk''' denotes any [[Risk Type]] that is (or may become) pervasive across the entire system being analyzed. |
== Causes == | == Causes == | ||
| Line 12: | Line 12: | ||
* [[Pandemic Risk]] | * [[Pandemic Risk]] | ||
* Increasingly considerations also around [[Systemic Cyber Risk]] | * Increasingly considerations also around [[Systemic Cyber Risk]] | ||
| + | |||
| + | == Issues and Challenges == | ||
| + | * The terms systemic and systematic risk are not synonyms but have an ambiguous overlap. See [[Systemic versus Systematic Risk]] | ||
== See Also == | == See Also == | ||
* [[Correlation]] | * [[Correlation]] | ||
| + | * [[Systematic Risk]] | ||
[[Category:Systemic Risk]] | [[Category:Systemic Risk]] | ||
| + | [[Category:Portfolio Management]] | ||
Latest revision as of 13:11, 10 June 2021
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
Issues and Challenges
- The terms systemic and systematic risk are not synonyms but have an ambiguous overlap. See Systemic versus Systematic Risk
