This is the opposite of speculative risk.
For example, the possibility that a person's house will be destroyed due to a natural disaster is pure risk. In this example, it is unlikely that there would be any potential benefit to this risk.
There are products that can be purchased to mitigate pure risk. For example, home insurance can be used to protect homeowners from the risk that their homes will be destroyed.
Other examples of pure risk events include premature death, identity theft and career-ending disabilities.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
pure risk — n: a risk that can only result in loss compare speculative risk Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
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Pure Yield Pickup Swap — A transaction in which bonds with lower returns are swapped for bonds with higher returns. With a pure yield pickup swap the sole purpose of the transaction is to increase yield, the new bonds will have a similar maturity and risk rating as the… … Investment dictionary
pure interest — noun : interest on capital excluding payment for risk … Useful english dictionary
Speculative Risk — A category of risk that, when undertaken, results in an uncertain degree of gain or loss. All speculative risks are made as conscious choices and are not just a result of uncontrollable circumstances. Speculative risk is the opposite of pure risk … Investment dictionary
speculative risk — n: a risk that may result in either a loss or a gain compare pure risk Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
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