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The Rise of Systemic Risk During the Financial Crisis Systemic Risk is the risk of breakdown in the nancial system, particularly due to spillover e ects from one market into others By 2007, many banks were highly leveraged and had little capital as a Investment companies (mutual funds): firms managing funds for investors Investment bankers: firms specializing in the sale of new securities to the public by underwriting the issue Underwriting: a process by which an investment banker raises investment capital Business direction with boat paper and arrow on blue background.investment success concepts ideas. BKM Chapter 01 Investments: Background and Issues Multiple Choice Questions 2. Learning where different assets stand on the investment risk ladder is the first step to understanding investments. PDF Pack. Next 1 Previous. lemonsoup14. Like. Human hand stacking generic coins over a black background with hexagonal golden shapes. 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