What type of risk involves potential losses without a direct action from the individual?

Static risk refers to types of risks that involve potential losses or adverse effects that can occur without any individual action or intervention. This type of risk is typically associated with events or circumstances that are predictable and can happen repeatedly over time, such as natural disasters, theft, or other incidents. Since static risks are often linked to predictable outcomes, they are typically easier to anticipate and assess.

Dynamic risk, in contrast, involves changes that can affect the risk environment, such as economic fluctuations or shifts in market conditions, which are inherently unpredictable. Particular risk is more focused on risks that can affect a specific individual or entity, while systemic risk refers to risks that can affect an entire system or market, typically stemming from interconnectedness within the financial system. By clearly defining static risk in this context, it becomes evident why it is the correct answer, highlighting its nature of inducing potential losses independent of individual actions.