Contagion

Risk identification.

Contagion is the risk that the failure of one participant in financial markets might have widespread secondary adverse effects throughout financial markets, the wider economy, or both.

Sometimes known informally as a domino effect.

See also

• European Systemic Risk Board (ESRB)
• G-SIB
• Negative externality
• Prudential regulation
• Resolution weekend
• Risk
• Risk management
• Risk transmission
• Spillover risk
• Systemic risk
• Too Big To Fail