What Is a Systematic Risk?

Systemic risk refers to the fact that the country has not been found or valued due to a variety of external or internal adverse factors over a long period of time. Resonance at a certain period of time has led to the inability to control the financial system participants in a panic flight (selling), causing market-wide investment risks Increase. Systemic risk affects all participants in the market and cannot be eliminated by diversifying investments.

Systemic risk

Systemic risk is

Systemic risk is characterized by:

Systemic risks are mainly caused by macro factors such as political, economic and social environment, including

For the prevention of systemic risks, the following aspects need to be paid attention to:

"Systematic risk" refers to an event that causes a series of continuums in a system of institutions and markets

In reality, the operating status of each company will be affected by its own operating status, and these factors have little to do with other companies.

This kind of risk mainly affects a certain type of securities product and has no direct connection with other securities products in the market. Investors can offset non-systematic risks by diversifying their investments.

Non-systematic risks include operational risks, financial risks, and default risks.