zentralrisiko
Zentralrisiko, also known as systemic risk or systemic risk exposure, refers to the potential for a failure in a critical component of a financial system that could trigger a cascade of defaults, leading to widespread financial instability. Unlike idiosyncratic risks, which affect individual entities or markets, zentralrisiko poses a threat to the entire financial system or a significant portion of it. This concept is particularly relevant in banking, insurance, and other interconnected financial sectors where the failure of one institution can destabilize others through direct or indirect linkages.
The origins of zentralrisiko can be traced back to financial crises such as the Great Depression (1929)
Key sources of zentralrisiko include leverage, liquidity mismatches, contagion effects, and systemic interdependencies. For instance, a
Mitigation strategies focus on enhancing resilience through diversification, regulatory oversight, and market discipline. Central banks often