svigsrisikoen

**svigsrisikoen** refers to the concept of risk associated with the failure of a financial institution, particularly in the context of the Norwegian banking system. The term is derived from the Norwegian phrase "svikrisiko," which translates to "default risk" or "failure risk." In Norway, this concept gained prominence during the financial crisis of 2008–2009, when concerns arose about the stability of certain banks, particularly those with significant exposure to international markets or real estate.

The term became widely discussed following the collapse of Icelandic banks in 2008, which had substantial operations in Norway. This event highlighted the potential systemic risks to Norwegian banks if their foreign counterparts failed. The Norwegian government and central bank, Norges Bank, introduced measures to ensure financial stability, including deposit guarantees and stress tests to assess the resilience of domestic banks.

**svigsrisikoen** encompasses not only the risk of individual bank failures but also the broader implications for the economy, such as reduced lending, market confidence, and potential contagion effects. Regulatory frameworks, such as those established by the Financial Supervisory Authority of Norway (Finansilsynet), were strengthened to mitigate such risks. These frameworks include capital requirements, liquidity standards, and ongoing monitoring of bank health.

The term remains relevant in discussions about financial resilience, emphasizing the importance of robust risk management and regulatory oversight to prevent systemic failures. While Norway’s banking sector has generally remained stable, ongoing vigilance is necessary to address evolving risks in an interconnected global financial system.