What type of risk affects the entire economy or large numbers of people?

Fundamental risk refers to risks that have widespread impacts, affecting a large segment of the population or the economy as a whole. These types of risks are inherent in the economic, social, or environmental fabric of society and arise from external factors that individuals or businesses cannot control. Examples include natural disasters, economic recessions, or widespread disease outbreaks, which can have far-reaching effects on large groups of people.

In contrast, particular risk pertains to risks that affect only specific individuals or entities, such as a house fire or a car accident. Speculative risk involves situations where there is a chance of either loss or gain, such as investing in the stock market. Operational risk relates to potential failures in internal processes, systems, or people within a specific organization rather than affecting the broader economy. Thus, fundamental risk is the correct choice as it captures the essence of risks impacting large numbers of people or entire economic systems.