MANAGEMENT

Detailed explanation-1: -Pure risk is a category of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved. Pure risk is generally prevalent in situations such as natural disasters, fires, or death.

Detailed explanation-2: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain. Fires, floods and other natural disasters are categorized as pure risk, as are unforeseen incidents, such as acts of terrorism or untimely deaths.

Detailed explanation-3: -Pure risk is most common in situations such as fires, natural disasters, or death. They are situations that cannot be predicted and are beyond control. It is also commonly known as absolute risk.

Detailed explanation-4: -Income Risk, Expense Risk, Asset/Investment Risk, and Debit/Credit Risk are the four types of risk.

Detailed explanation-5: -Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. Insurance is concerned with the economic problems created by pure risks. Speculative risks are not insurable.