MANAGEMENT

Detailed explanation-1: -Systematic risk refers to the risk inherent to the entire market or market segment. Systematic risk, also known as “undiversifiable risk, ” “volatility” or “market risk, ” affects the overall market, not just a particular stock or industry.

Detailed explanation-2: -Systemic risk refers to the risk of a breakdown of an entire system rather than simply the failure of individual parts. In a financial context, it denotes the risk of a cascading failure in the financial sector, caused by linkages within the financial system, resulting in a severe economic downturn.

Detailed explanation-3: -Systemic risk is the risk that a company-or industry-level risk could trigger a huge collapse. Systematic risk is the risk inherent to the entire market, attributable to a mix of factors including economic, socio-political, and market-related events.

Detailed explanation-4: -Systematic risk is a non-diversifiable risk or market risk. These factors are beyond the control of the business or investor, such as economic, political, or social factors. Meanwhile, microeconomic factors that affect companies are unsystematic risks.

Detailed explanation-5: -Types: Systematic risks include interest, inflation, purchasing power, and market risk, whereas unsystematic risks are financial and business-specific risks.