Which type of risk can potentially impact a large group of people simultaneously?

Fundamental risk refers to risks that affect a large group of individuals simultaneously rather than just one person or a small group. This type of risk arises from broad, systemic factors that can impact entire populations, such as natural disasters, economic shifts, or societal changes. For instance, a hurricane can devastate a coastal city, affecting thousands of residents at once, while a recession may lead to widespread unemployment across various sectors of the economy.

In contrast, particular risk pertains to risks that affect individuals or small groups, such as a house fire or a car accident. Speculative risk involves situations where the outcome can lead to either a profit or a loss, such as investments in the stock market. Economic risk refers to the potential for losses due to economic downturns or fluctuations, but it does not inherently imply a simultaneous impact on a large group like fundamental risks do.

Understanding the distinction of fundamental risk helps in risk management practices, as it necessitates different strategies to mitigate impacts on large populations, unlike more isolated risks that can often be managed on an individual level.