Systemic Risk

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Systemic Risk

Risk common to a particular sector or country. Often refers to a risk resulting from a particular "system" that is in place, such as the regulator framework for monitoring of financial_institutions.

Systemic Risk

A risk that is carried by an entire class of assets and/or liabilities. Systemic risk may apply to a certain country or industry, or to the entire global economy. It is impossible to reduce systemic risk for the global economy (complete global shutdown is always theoretically possible), but one may mitigate other forms of systemic risk by buying different kinds of securities and/or by buying in different industries. For example, oil companies have the systemic risk that they will drill up all the oil in the world; an investor may mitigate this risk by investing in both oil companies and companies having nothing to do with oil. Systemic risk is also called systematic risk or undiversifiable risk.
References in periodicals archive ?
We also tested the predictive validity of the general risk propensity scale by using it as a predictor of decision-making agents' acceptance of a new product development proposal as described in the Appendix.
The Treasury response said that despite the specific failing in the case of Northern Rock, the FSA's general risk based approach was correct.
She said: "I felt that the lack of cleanliness of lavatories, washing facilities and showers, the hit and miss hygiene measures and the general risk of infection in hospitals were a risk to my increasingly vulnerable state.
These were the findings of research by the Institute of Chartered Accountants in England & Wales (ICAEW) and Keith Williamson, small business specialist of the Northern Society of Chartered Accountants, said: "Businesses are recommended to review their general risk profile every six months.
The key revisions include an expansion of the policy's scope to include those Federal Reserve Bank payments and securities settlement systems that meet the policy's application criteria, revised general risk management expectations for systems subject to the policy, and the incorporation of both the Core Principles for Systemically Important Payment Systems (Core Principles) and the Recommendations for Securities Settlement Systems (Recommendations).
Independent research has claimed "no general risk to the health of people living near them", but warns "there can be indirect adverse effects" and kids "may be vulnerable".
Screening flexible sigmoidoscopy does not put people at higher than general risk of cardiovascular disease events, Dr.
According to MEPs these new provisions run counter to the very aim of the Directive, which seeks to harmonise Member State laws allowing only safe products to be marketed.The amendment adopted on the precautionary principle demands that the competent parties are guided by this principle, which effectively constitutes, "the general risk management principle used by the public authorities".--The main aim of the draft Directive is to strengthen Directive 92/59/EEC on general product safety and ensure that the provisions are implemented coherently.
While this reference book's generic title implies it is a guide for general risk management activities, the focus is actually centered on the health care industry.
For example, when considering a course entitled, "Risk Management and Insurance," ascertain whether it primarily covers the entire risk management process with insurance being only one relatively minor technique, or if it examines insurance in a general risk management setting.
Irrespective of trust, both sides should always be mindful of general risk and try to mitigate it.
"General risk sentiment is better," said Phon Vilayoune, senior manager of credits and emerging markets at Samba Financial Group in Riyadh.

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