Which type of risk is associated with natural disasters like earthquakes?

Fundamental risk is associated with risks that affect a large number of people or properties at the same time and often stem from natural or social phenomena. Natural disasters, including earthquakes, hurricanes, and floods, typically fall under this category because they can cause widespread damage and impact entire communities or regions. These events are beyond the control of individuals and are not limited to a specific person or entity, making them fundamentally different from risks that might only affect a particular person or specific situation.

In contrast, particular risk usually involves more localized risks that have a more limited impact, such as theft of property or car accidents. Insurable risk refers to risks that can be covered by insurance, often requiring a certain level of randomness and potential for financial loss, which can apply to both fundamental and particular risks but is not a defining aspect of natural disasters specifically. Speculative risk involves scenarios where there are opportunities for both loss and gain, such as investments in the stock market, and does not pertain to the uncontrollable nature of disasters. Thus, fundamental risk is the correct categorization for the risks posed by natural disasters like earthquakes.