Shared video memory in this context means is if the video card runs out of VRAM, then video card may start using space in RAM. This is similar to when if the computer runs out of RAM, it starts shoving things onto the page file in the storage drive. It's just that in this case, instead of VRAM going to the storage drive, it goes to the next fastest thing. The 16GB is just the limit that the video card is allowed to do this before the system declares there's not enough memory for the video card to do anything.
This doesn't mean that the video card has 16GB of system memory guaranteed for itself. It just means that it can use that much if it has to.