Which risk is referred to when an individual has the potential for financial loss without it impacting the broader economy?

The correct choice refers to particular risk, which is characterized by the potential for financial loss that affects an individual or a specific group but does not have a widespread impact on the economy as a whole. This type of risk is usually associated with personal losses such as damage to property or personal injury that only affects the individual.

Particular risks are contrasted with systemic risks, which can have ramifications for the entire market or economy. This distinction is important because particular risks can often be managed through individual insurance policies, allowing individuals to protect themselves from losses that do not result in broader economic implications.

Dynamic risk involves changes over time, such as market fluctuations, and pure risk involves situations that can only lead to loss or no loss but also may not narrow down to individual situations alone. Moral hazard refers to a situation where a party insulated from risk may behave differently than if they were fully exposed to the risk.