Systemic risk is
A)the risk of a failure of the entire financial system
B)the risk associated with broad market movements
C)the risk of a failure of a firm's financial risk management system
D)the risk of large price movements throughout the financial system
E)none of the above

Question

Quizplus · Accepted Answer

Systemic risk refers to the risk of a failure of the entire financial system, where the failure of one institution or market can trigger a cascade of failures throughout the system. This type of risk is not limited to one firm or sector but can impact the entire economy.

Systemic Risk Is