Health & SafetyThe chance of a disease or injury. This can be a business risk such as the risk that a poorly designed product will injure people. It can also be a personal risk such as the chance that you will get a disease.
FireThe probability of a fire that causes injury, loss of life and damage to property.
CrimeThe probability that you will be a victim of crime such as a theft.
AccidentsThe probability of an accident such as a car accident.
WarThe probability of a conflict between nations that causes loss of life, instability and potentially catastrophic damage.
NotesTraditionally, insurance companies only insure pure risks. Speculative risks are taken to achieve opportunity such that insuring them doesn't usually make sense. However, products do exist to hedge against certain types of speculative risk such as exchange rate risk.Pure risk is the most likely type of risk to impact individuals who mostly avoid speculative risk if they don't invest or own a small business.Some definitions of pure risk suggest that they are inherently beyond human control. This is clearly not true as fire, diseases and injury can often be prevented or mitigated.
|Overview: Pure Risk
A risk that can only result in losses.
A probability of a loss with no possibility of a gain.