Which type of risk arises from a cause outside the control of any one individual and affects a large number of people?

Fundamental risk is the correct choice as it refers to types of risks that arise from causes that are external to individuals and have broad implications for large groups of people. These risks are typically systemic in nature and can result from events such as natural disasters, economic downturns, or widespread epidemics. Since they affect many individuals simultaneously, they cannot be mitigated by individual actions.

This concept is essential in the insurance industry, as it defines the basis for certain types of insurance coverage, like catastrophic or natural disaster policies. Understanding fundamental risks allows insurers to structure products and manage large-scale risks that impact entire communities or sectors.

Particular risk refers to risks that affect only a specific individual or small group, which distinguishes it clearly from fundamental risks. Pure risk deals with situations that can only result in a loss or no loss, not a gain, while speculative risk involves the chance of gain or loss, indicating decision-making for investment. Fundamental risk encompasses elements that make it distinct from all these other categories, emphasizing its broad, uncontrollable nature.