What type of risk only deals with situations that could result in financial loss without any opportunity for gain?

Pure risk refers to situations that involve only the potential for financial loss and do not present any opportunity for gain. This type of risk typically involves circumstances that can lead to unforeseen liabilities or expenses, such as natural disasters, accidents, or health issues. When dealing with pure risk, the outcomes are limited to either experiencing a loss or having no loss at all, emphasizing the lack of any prospect for profit or benefit.

In contrast, speculative risk involves scenarios that can yield either a profit or a loss, such as investments in stocks or real estate. Market risk pertains specifically to the possibility of losing value in investments due to fluctuations in the market, also allowing for potential gains. Business risk encompasses various uncertainties that businesses face, including operational challenges, competition, and changes in market demand, which can lead to both losses and profits. Therefore, pure risk is distinctly defined by its exclusive focus on loss without the possibility of gain.