3 Answers
Some examples of systemic risks include:
- Risks related to climate change such as flooding, extreme weather events, and drought;
- Risks related to financial markets such as inflation or interest rate changes;
- Risks related with healthcare such as an outbreak of a disease or an accident involving a hospital;
- Risks related with business continuity or IT systems like outages and cyberattacks.
Systematic risk is a type of risk that is not random and can be managed by a system. It is different from unsystematic risk, which cannot be managed and has no pattern.
Examples of systematic risks include the following:
-Losses from credit default swaps
-Currency fluctuations
-Stock market crashes
Systematic risk is the risk that can be quantified, measured and reduced by the use of systematic methods.
Examples of systematic risks include:
- The risk of a company's stock price declining due to declining sales or profits.
- The risk of an individual's portfolio value decreasing due to market volatility.
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