3 Answers
Systematic risk is a risk that can be predicted and anticipated. It is not random or unforeseen. The risk is considered systematic because it can be understood and analyzed in terms of its causes and effects.
The major types of systematic risks are:
- Operational risk
- Technical risk
- Market risk
- Regulatory risk
Systematic risk can be broken down into three different types:
1) Economic risks: these risks can arise from changes in the economy, such as unemployment rates or inflation rates.
2) Technological risks are also related to changes in technology and include emerging technologies such as blockchain and artificial intelligence.
3) Political risks are more difficult to predict because they change over time with new political regimes coming into power and changing economic policies.
Systematic risk is a type of risk that has a set of specific causes, and can be mitigated by taking action.
Systematic risk is the combination of many risks with the potential to affect an entire system. It can be caused by a single event or series of events, such as natural disasters, cyber attacks, terrorism, or financial market crashes.
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