Related risk that increase in effect with each added risk?

Answer 1

The concept of cumulative risk refers to the idea that each additional risk factor compounds the overall risk faced by an individual or system. For instance, in health contexts, factors like smoking, poor diet, and lack of exercise can collectively elevate the risk of chronic diseases more than each factor would alone. Similarly, in financial contexts, combining multiple investments with high volatility can exponentially increase the risk of significant losses. This interconnectedness highlights the importance of considering the combined effects of multiple risks rather than evaluating them in isolation.