What is an example of a fundamental risk?

A fundamental risk is a type of risk that affects a large number of people or an entire community, often caused by external factors beyond individual control. In this case, a natural disaster affecting many fits this definition perfectly. Such disasters—like hurricanes, earthquakes, or floods—can have widespread effects, impacting homes, businesses, and infrastructure simultaneously. Due to their scale, these risks typically require collective responses, such as government intervention or community support.

In contrast, other options represent risks more specific to individuals or certain entities. A stolen wallet embodies personal risk, focusing on an individual's misfortune. Personal injury from a fall is also an individual risk, concerning personal health and safety. A failed business strategy, while it can impact a company, doesn't have the sweeping societal impact characteristic of fundamental risks. Therefore, the natural disaster is the correct example of fundamental risk as it encompasses the potential for widespread harm and disruption to many people at once.