What is systemic risk? As the title suggests, thank you

Systemic risk refers to those risk factors that can affect the entire financial market, such as economic cycles, changes in national macroeconomic policies, etc. This risk cannot be offset or weakened by diversification. Therefore, it is also called non-divergeable risk.

Unsystematic risk is a type of risk associated with a particular company or industry, regardless of economic, political, and other factors that affect all financial variables. Through diversification, unsystematic risk can be reduced and eliminated if diversification is sufficiently effective. Therefore, it is also called diversible risk.

Systemic risk is characterized by an adverse impact on the entire ticket market or the vast majority of the market in general. The consequences of systemic risk are universal, and its main feature is that almost all of them are common, and investors often suffer large losses.

It is precisely because this risk cannot be offset or eliminated by diversification that it is also called non-diversifiable risk. For the prevention of systemic risks, it is necessary to pay attention to the following aspects: First, we should be vigilant against systemic risks.

When there is a large increase in the overall market, the trading volume has repeatedly hit a high volume, the money-making effect is popular, the market is full of popularity, investors are enthusiastic to enter the market, and investors are gradually indifferent to the risk awareness, it is often a sign that systemic risk will appear. From the analysis of investment value, when the overall value of the market has a tendency to be overestimated, investors must not relax their vigilance against systemic risks. The second is to pay attention to controlling the proportion of capital investment.

In the process of operation, there are always uncertainties, and investors can constantly adjust the proportion of capital investment according to the stage of development. Due to the current large increase, from the perspective of effective risk control, investors should not adopt the method of heavy position operation, and the full position operation of all in and out is even more inappropriate. During this period, it is necessary to control the proportion of capital investment within the range of tolerable risks.

Heavier investors can selectively throw some**, lighten**, or use part of their investment funds in relatively safe investments, such as subscribing for new shares. Finally, be prepared to take profit or stop loss. Investors can't afford to experience systemic risk when, especially during periods of rapid rise.

If you sell your ** in advance, it often means that investors cannot enjoy the "crazy"** pull up opportunity. At this time, investors can continue to hold shares under the premise of control, but be ready to take profit or stop loss at any time, once the market has systemic risk, investors can decisively sell positions, so as to prevent further expansion of losses. Wish.

In modern investment theory, there are two major reasons for stock price fluctuations: one is the systemic risk related to the whole market, and the other is the non-systematic risk related to the enterprise. Systemic risk is the inherent risk of the entire market itself, which refers to the phenomenon that all the markets have changed due to certain factors, and it affects all the returns to varying degrees.

For example, changes in a certain economic policy and the promulgation of relevant laws and regulations will affect the entire ticket market. The main systemic risks include **** risk, interest rate risk, purchasing power risk and policy risk. During the Great Depression in the United States in the 30s, the entire market plummeted.

When the economy rebounded in 1986, the whole market soared, which is a typical reflection of systemic risks. Non-systematic risk, also known as specific risk, refers to the part of risk that is unique to a certain enterprise or industry, which affects the income of individual enterprises. A company's ** is not only affected by the entire market, the entire national economy and consumer confidence, but also by the industry and the company's unique factors.

For example, product market share, management level, scientific research achievements, technology development, competitors, costs, etc. In other words, even if the whole market is calm, the **** of this company will fluctuate due to this non-systematic risk. For non-systematic risk, in practice, the business risk and financial risk of the enterprise are mainly considered, and the total risk of the system and the non-system risk is the total market risk, but it is not simply added.

Both systemic and non-systematic risks can lead investors into traps. An investor who always missees the general trend may lose all his money in the systemic risk, and the non-systematic risk is more manifested in the reverse operation of a certain trading variety, which may also lead to the loss of investment. Generally speaking, systemic risk is a risk that cannot be avoided by technical operation for investors, while non-systematic risk can be avoided through a scientific and reasonable investment portfolio.

Warren Buffett's wealth also shrank by $13.6 billion in '08, and there is no effective technical operation to avoid systemic risk, and the only practical way is to reduce the position held.

It is objective, irresistible, and can only reduce it to a minimum degree of risk. Good luck!

Systemic risk is relative to a single risk.

Singular risks can be hedged by appropriate diversification, investing less in high-risk areas, or even avoiding investments in high-risk areas.

Systemic risk, on the other hand, is all-encompassing, and risks that are almost impossible to avoid.

Systemic risk is market risk, which refers to the impact of environmental factors such as overall politics, economy, and society. Systemic risks include policy risk, economic cyclical fluctuation risk, interest rate risk, purchasing power risk, exchange rate risk, etc. This risk cannot be eliminated through diversification, hence the term non-diversifiable risk.

Systemic risk can be measured in terms of beta.

Systemic risk actually refers to the risk that cannot be predicted when it will appear, and it stems from a variety of factors, such as policy changes, disastrous weather, and employee turnover being poached.

Hello classmates, I'm glad to answer for you!

Systematic risk affects the risk of multiple assets.

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Gordon wishes you a happy life!

The system has vulnerabilities and viruses are easy to attack.

It's the risk of a system failure.

Systemic risk refers to the fact that the country has not been discovered or paid attention to due to a variety of external or internal unfavorable factors accumulated for a long time, and the resonance in a certain period of time leads to uncontrollable panic flight (selling) of participants in the financial system, resulting in an increase in the investment risk of the whole market. Systemic risk has an impact on all participants in the market and cannot be eliminated through diversification. Systemic risks include policy risk, economic cyclical fluctuation risk, interest rate risk, purchasing power risk, and exchange rate risk.

Among them, policy and macro changes interact with the liquidity of the market.

Extended information: We can take the right approach to deal with systemic risks that can emerge at any time.

First, when systemic risks occur, remain optimistic and respond positively. The reason why I put this article in the first place is because I think the most direct risk on ** comes from emotional changes, and the risk itself is a combination of irrational emotions. Every time an unforeseen crisis occurs, the market falls into a panic, and most people will choose to flee in a panic in a panic, and it is likely to sell at the bottom of the market.

Investors should be optimistic and believe that no crisis will not pass, and that there will be no end in sight. (If the sky really falls, the end of the world, the money itself loses its meaning), and none of the excellent managers we know are not strategic optimists. Maintaining an optimistic attitude and taking positive actions to deal with every challenge of systemic risk is the embodiment of the so-called "professionalism" of professional investors.

Second, it's the perfect time to take a look at your portfolio. In the non-systematic normal market fluctuations, our portfolio may be mixed, and it is difficult to test the authenticity, but under the systemic risk, the market is very predictable, insightful, or more able to see the choice of smart funds, I have done research after every systemic risk, excellent companies with real long-term investment value stand out, such as Yili Mengniu after melamine, such as Moutai after the plasticizer incident, zoom after the epidemic, etc.; At the same time, we can identify many pseudo-value and pseudo-growth companies, and in addition, we can pay attention to the shortcomings of our investment portfolio's risk control, so that we can quickly adjust. The rapid growth of my portfolio during the epidemic this year is largely due to a number of good companies at the bottom during the epidemic, many of which have doubled or even tripled now.

What is systemic risk Holistic risk or systemic risk is caused by the uncertainty of fundamental economic factors, so the identification of systemic risk is to make a judgment on the macroeconomic situation of a country in a certain period of time. It refers to the adverse impact on the entire ** ticket market or the vast majority of ** generally. Generally, it includes factors related to the overall situation such as the economy.

For example, a serious crisis in the world economy or the economy of a certain country, persistently high inflation, catastrophic natural disasters, etc. The consequences of the overall risk are universal, and its main feature is that all **are**, and it is impossible to preserve the value by purchasing others**. In this case, investors are going to suffer a lot of losses, and many of them have to try their best to throw out their **.

The great collapse of 1929 was a product of systemic risk. Factors such as fluctuations in the economic cycle in the systemic risk are extremely serious blows, and no one can escape its blow, and the risks borne by investors in each market are basically equal. The probability of such an overall risk occurring is small.

Due to the progress of human society, the improvement of the ability to control nature and society, the prevention of the occurrence of overall risks and the comprehensive management methods after the occurrence have been greatly enhanced. Systemic risk mainly includes interest rate risk, purchasing power risk, market risk, etc.

Systemic risk is caused by uncertainty in credit activity. Uncertainty is divided into extrinsic uncertainty and intrinsic uncertainty. External uncertainty will affect the entire market, so credit risk caused by external uncertainty is called systemic risk.