Editing Systematic risk (section)

{{short description|Vulnerable to significant events that affect aggregate outcomes}}
{{distinguish|systemic risk}}

In [[finance]] and [[economics]], '''systematic risk''' (in economics often called '''aggregate risk''' or '''undiversifiable risk''') is vulnerability to events which affect aggregate outcomes such as broad market returns, total economy-wide resource holdings, or aggregate income. In many contexts, events like earthquakes, epidemics and major weather catastrophes pose aggregate risks that affect not only the distribution but also the total amount of resources. That is why it is also known as contingent risk, unplanned risk or risk events. If every possible outcome of a [[stochastic]] economic process is characterized by the same aggregate result (but potentially different distributional outcomes), the process then has no aggregate risk.