While there is no single universally accepted definition of systemic risk, it is now commonly accepted that these are risks which affect large chunks of the financial system and which have the potential to adversely impact the real economy.
A comprehensive definition of risk as defined by the IMF, FSB and BIS is “a risk of disruption to financial services that is caused by an impairment of all or parts of the financial system and has the potential to have serious negative consequences for the real economy.” There is also a broad agreement that there are two facets to systemic risk.