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A systemic hazard refers to a risk that can lead to widespread failure across interconnected systems, such as financial markets, infrastructure, or ecosystems. These hazards arise from the interdependencies and complexities within a system, where the failure of one component can trigger a cascade of failures throughout the entire system. Examples include economic crashes, pandemics, or environmental disasters, where the impact is not confined to a single entity but affects multiple sectors or regions. Understanding systemic hazards is crucial for effective risk management and resilience planning.

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4mo ago

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