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contagion risk

 

Definitions from the Web

Contagion Risk

Definition:

Contagion risk refers to the possibility of a financial shock or crisis spreading rapidly and negatively affecting other financial institutions, markets, or economies.

Sense 1: Financial Risk

Noun: In finance, contagion risk is the potential for financial distress experienced by one institution, market, or country to spread to other interconnected entities, resulting in a domino effect of financial instability.

Example sentence: The collapse of a major bank poses a significant contagion risk to the entire financial system.

Sense 2: Health Risk

Noun: In the context of public health, contagion risk refers to the likelihood of a disease or infectious agent spreading rapidly within a population or across geographic areas.

Example sentence: The outbreak of a contagious disease in a densely populated city raises the contagion risk for neighboring regions.

Sense 3: Investment Risk

Noun: In investment terms, contagion risk represents the potential for shocks in one market or asset class to have a cascading impact on other related markets or assets.

Example sentence: During times of economic uncertainty, investors should consider diversifying their portfolios to mitigate contagion risk.

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