Though natural flavors may sound better than their presumably chemical-laden alternative â artificial flavors â it turns out they are not actually all that different from one another. We got to the bottom of the difference between artificial and natural flavoring â and what it might mean for your health.
What is 'Systematic Risk'. The risk inherent to the entire market or an entire market segment. Systematic risk, also known as âundiversifiable risk,â âvolatilityâ or âmarket risk,â affects the overall market, not just a particular stock or industry. This type of risk is both unpredictable and impossible to completely avoid.
DEFINITION of 'Systemic Risk'. The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy. Systemic risk was a major contributor to the financial crisis of 2008. Companies considered a systemic risk are called âtoo big to fail.â These institutions are very large relative to their respective industries or make up a significant part of the overall economy. A company that is highly interconnected with others is also a source of systemic risk.