We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies. You can view our cookie policy and edit your settings here, or by following the link at the bottom of any page on our site.
Systematic risk is the risk that the entire financial system, rather than a single stock or industry, will be affected by a particular event or series of events.
Systematic risk definition
Systematic risk is the risk that the entire financial system, rather than a single stock or industry, will be affected by a particular event or series of events.
This occurred during the global financial crisis of 2008 where subprime debt issues and the subsequent collapse of major financial institutions, such as Lehman Brothers, caused stock markets to drop worldwide.
Other examples of systematic risk can include natural disasters, war and major political or regulatory change.
IG Smart Portfolios
Invest in an expertly managed portfolio, at a fraction of the cost of traditional wealth managers and independent financial advisors (IFAs), with an IG Smart Portfolio.