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Systemic Risk

Description of Systemic Risk. Explanation.




  

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Definition Systemic Risk. Description.

 

Systemic Risk involves all forms of widespread risk that are not particular to a company and which affect all companies or the entire financial system as a whole. Examples include a stock market crash, the breakdown of the entire banking system or the event of a nuclear war.

 

Investors can not protect their investments from this type of risk by diversifying their portfolio.

 

Sometimes also called: Market Risk.


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Compare with: Non-Systemic Risk  |  Capital Asset Pricing Model  |  Plausibility Theory  |  Hedge  |  Hedging  |  Organizational Resilience

 

Return to Management Hub: Finance & Investing  |  Strategy

 

More on Management  |  Return to Management Dictionary  | 

 

End of description Systemic Risk. An explanation.

 

 

Copyright 2009 12manage - The Executive Fast Track. V10.4 - Last updated: 11/21/2009. All names tm by their owners.