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Systemic Risk |
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Description of Systemic Risk. Explanation. |
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.
Compare with: Non-Systemic Risk | Capital Asset Pricing Model | Plausibility Theory | Hedge | Hedging | Organizational Resilience |
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End of description Systemic Risk. An explanation. |
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