MANAGEMENT

Detailed explanation-1: -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-2: -Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss.

Detailed explanation-3: -Speculative Risk: Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss.

Detailed explanation-4: -Pure risk, also known as absolute risk, is insurable. Speculative Risk: Three possible outcomes exist in speculative risk: something good (gain), something bad (loss) or nothing (staying even). Gambling and investing in the stock market are two examples of speculative risks.