What is systemic risk?
The risk that the financial system itself becomes impaired, such as a credit freeze or liquidity crisis. Not captured well by beta; evaluated through stress testing, liquidity planning, and downside scenarios.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.