Definition

Systematic Risk

Systematic Risk is the risk that the failure of one participant in a payment or settlement system, or in financial markets generally, to meet its required obligations when due will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a payment and settlement system) when due.

Share it:  Cite

More from this Section

  • Financial Modernization Act of 1999
    Financial Modernization Act of 1999 is a federal law that allows banks, insurers, investment ...
  • Preferred habitat theory
    Preferred habitat theory is a theory that is closely related to liquidity premium theory, ...
  • Appreciation
    Appreciation— in the context of exchange rate changes, a rise in the foreign exchange ...
  • Brokers
    Brokers is the agents for investors, they match buyers with sellers. ...
  • Retrospective reserve
    Retrospective reserve is in life insurance, the net premiums collected by the insurer ...