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Systemic risk

Risk associated with the insufficient stability of a system, such as a market or financial system, caused by the existence of numerous links and interdependencies between the entities in the system, so that the inability of one or a few entities to perform their functions may lead to a cascade of failures of other entities and ultimately result in the collapse of the entire system. This should be distinguished from the systematic risk.

Reference: Oxford Press Dictonary of Economics, 5th edt.