Which type of risk involves potential loss to personal health or safety?

The correct answer, personal risk, refers specifically to the potential for loss that directly affects an individual's personal health, safety, or well-being. This encompasses various forms of risk that individuals may face, such as illness, injury, or even the potential for death. Personal risks can arise from various activities and situations, impacting one's quality of life and ability to work or earn income.

Understanding personal risk is crucial in the context of insurance and risk management because it helps individuals assess their own vulnerabilities and the need for protective measures, such as health insurance or life insurance. This type of risk is distinct because it deals directly with individual circumstances rather than the financial implications of damaging property, incurring liability to others, or operational issues within a business context.

In contrast, the other types of risks focus on different aspects—property risk involves potential loss or damage to physical assets, liability risk relates to legal responsibilities for injuries or damages caused to others, and operational risk pertains to risks arising from internal processes or systems within an organization. Each risk type has its own focus and implications, but personal risk stands out for its direct connection to individual health and safety outcomes.