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RBA Glossary definition for systemic risks

systemic risks – Events which may jeopardise financial system stability and cause harm to the real economy. For example, the Y2K problem was regarded as such a risk. They may include the risk that the failure of one participant in a payments system, or in financial markets generally, to meet their required obligations when due, will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems.

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The Deregulated Era

31 Dec 2001 RDP 2001-07
Bryan Fitz-Gibbon and Marianne Gizycki
The third criticism of the Reserve Bank's role was that it underestimated the systemic implications of Farrow's failure. ... knowledge to be best placed to manage systemic risk (Financial System Inquiry 1997).
https://www.rba.gov.au/publications/rdp/2001/2001-07/deregulated-era.html

Theoretical Approaches to Lender-of-last-resort Policy

31 Dec 2001 RDP 2001-07
Bryan Fitz-Gibbon and Marianne Gizycki
Systemic risk arises from the potential for problems at one bank to cause difficulties at other banks. ... Another difficulty with the systemic-risk approach is that it risks fostering the presumption that certain institutions are ‘too big to fail’.
https://www.rba.gov.au/publications/rdp/2001/2001-07/theoretical-approaches-to-lender-of-last-resort-policy.html

Introduction

31 Dec 2001 RDP 2001-07
Bryan Fitz-Gibbon and Marianne Gizycki
In some instances, it may also seek to insulate the economy from the systemic effects of bank failure. ... By providing such protection, however, the lender of last resort risks undermining market discipline of banks' risk-taking.
https://www.rba.gov.au/publications/rdp/2001/2001-07/introduction.html

Conclusion

31 Dec 2001 RDP 2001-07
Bryan Fitz-Gibbon and Marianne Gizycki
Judging the systemic impact of potential bank failure, however, adds another element of difficulty to implementing lender-of-last-resort policy. ... The failures that have occurred, however, reinforce the notion that the systemic label should not be
https://www.rba.gov.au/publications/rdp/2001/2001-07/conclusion.html

References

31 Dec 2001 RDP 2001-07
Bryan Fitz-Gibbon and Marianne Gizycki
Rochet J and J Tirole (1996), ‘Interbank Lending and Systemic Risk’, Journal of Money Credit and Banking, 28(4), pp 733–762.
https://www.rba.gov.au/publications/rdp/2001/2001-07/references.html