What is the term for risk that can affect a large number of persons or groups within an economy?

The term that refers to risk affecting a large number of persons or groups within an economy is fundamental risk. This type of risk encompasses events that can have widespread effects, impacting entire communities, economies, or society at large, rather than just individual entities. Examples of fundamental risk include natural disasters like floods and earthquakes, economic recessions, and pandemics, which can disrupt many aspects of society and the economy simultaneously.

In contrast, particular risk pertains to losses that affect an individual or a small group of individuals, such as a fire damaging a single home or theft from a business. Dynamic risk involves changes in the business environment or economy that may create new risks or alter existing ones. Speculative risk refers to situations that can lead to either a gain or a loss, often associated with investments where potential positive outcomes exist alongside negative outcomes. Understanding these distinctions is crucial for effective risk management in personal lines insurance and broader economic contexts.