Static risk can be defined as losses caused by what type of events?

Static risk pertains to the potential for loss that arises from relatively predictable and stable circumstances, primarily linked to human actions and irregular nature events. This type of risk remains constant over time and is not significantly influenced by changing economic conditions or trends, which would fall under dynamic risks.

Human actions can include a variety of situations, such as negligence, fraud, or accidents where individuals' behaviors directly lead to loss. Irregular nature events could encompass things like occasional human errors or mechanical failures that do not happen frequently but are part of the static risk profile.

In contrast, dynamic risks, which include changing economic conditions or technological advancements, reflect a more fluid environment where the factors contributing to risk are constantly evolving. Therefore, static risk focuses on those losses that are associated with stable, identifiable risks rather than the variability seen in other types of risks.