Loss potential. Various situations and causes contribute to the scenarios comprising this potential. Realized loss may or may not be insurable. Rises from a large number of entities impacted by negative natural or social events. Earthquakes, floods, hurricanes, inflation, unemployment, and war are such events.

More On This Topic

Link to This Definition
Did you find this definition of FUNDAMENTAL RISK helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary