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pure risk is the a situation in which there is a possibility of loss or no loss while speculative risk thereeither profit or loss

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Q: Differences between pure risk and speculative risk?
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What is the difference between the traditional risk management and enterprise risk management?

The differences between traditional risk management and enterprise risk management are their strategic applications and performance metrics. Enterprise risk management involves the whole organization while traditional risk management is usually more departmentalized.


What are the differences between risk and risk management?

A Risk is an uncertain event or condition that if it occurs, has a positive or negative effect on a Project's Objectives. Risk Management literally refers to the management of the Projects Risk. However, the official definition is: Risk Management is the act of increasing the probability & impact of positive events and decreasing the probability & impact of adverse events within a project.


What is the difference between risk and ambiguity?

Risk is a possible danger. Ambiguity is something that is not clear. Something that is ambiguous may pose a risk, but the words are not the same.


What is the difference between a 'policy' and a 'framework' specifcally in the context of risk management?

What is the difference between Education framework and plicy.


Is risk management about controlling risk not avoiding risk?

Avoidance is the best means to control the risk.If your efforts at avoiding the loss are successful it means you will save your business from the loss.That's why avoidance is considered as the first step in risk management process.But there is a difference between avoiding risk and accepting risk.Avoiding risk means that you are not going to do anything with the risk.But in accepting the risk you are actually doing something as you have accepted its impacts.

Related questions

How are risk exposures classified?

I think its classified as either pure risk or speculative risk


What is the difference between pure and speculative risk?

1. Pure Risk situations are those where there is a possibility of loss or no loss. There is no gain to the individual or the organization. WHERE AS Speculative Risks are those where there is a possibility of gain as well as loss. The element of gain is inherent or structured in such a situation. 2. Pure risks are generally insurable while the speculative ones are not. 3. The conceptual framework of the risk pooling can be applied to the pure risks, while in most of the cases of speculative risks where it is not possible. However, there may be some situation where the law of mathematical expectation might be useful. 4. Speculative risk carry some inherent advantages ti the economy or the society at large while pure risks like uninsured catastrophes may be highly damaging. 5. In pure risk, for example - a car meet with an accident or it may not meet with an accident. If the insurance policy is bought for the purpose, then if accident does not occur, there is no gain to the insured. Contrarily, if the accident occurs, the insurance company will indemnify the loss. In speculative risk, for example - if you invest in the stock market, you may either gain or lose on stocks.


Do Bad debts in a business a speculative risk?

yes it is a speculative risk.


What type of risk is not insurable?

Speculative (dynamic) risk is a situation in which either profit OR loss ispossible The outcome of such speculative risk is either beneficial (profitable) or loss. Speculative risk is uninsurable. Hope i helped!


What are the differences between 'risk' and 'uncertainty'?

Risk is a dangerous choice that a person makes. An uncertainty is how someone feels about the decision.


Is commodities and futures are extremely speculative and carry a high risk?

yes. TRUE, YUP,


What is the difference between the traditional risk management and enterprise risk management?

The differences between traditional risk management and enterprise risk management are their strategic applications and performance metrics. Enterprise risk management involves the whole organization while traditional risk management is usually more departmentalized.


Differences betwenn Builders Risk and Course of Construction Insurance?

The answer is........you spelled the word "BETWEEN" wrong. Can you say "SPELL CHECK"


Are pure risks always insurable?

Pure RisksPure risks, or those that have the possibility of loss or no loss, but no possibility of gain, are insurable, but there are criteria that must be met before they will be insured. So, no, they are not ALWAYS insurable. For example, a person who has been diagnosed with terminal cancer who attempts to acquire insurance will generally be refused. Though it is a pure risk because the person will either live (no loss) or die (loss), factors that determine eligibility for insurance are not met for that person. Likewise, a homeowner who has had previous fires in their homes may not be able to find insurance because they are considered too great a risk to insure, even though there will either be no fires (no loss) or there will be (loss) at their current home.There is another type of risk that is not insurable. Speculative risk, or risk with a possibility of gain, is that type of risk.


Differences between 'risk assessment' and 'risk perception'?

Assessment usually involves written policy via consultants. Perception suggests actual awareness. Strategic Thinking versus Tactical.


Types of losses the insurance protects against?

Speculative (dynamic) risk is a situation in which either profit OR loss ispossible The outcome of such speculative risk is either beneficial (profitable) or loss. Speculative risk is uninsurable. Hope i helped!


What is a speculative share?

Speculative Shares are shares that involve a very large risk to invest in. They are generally exploration companies - EG: Searching for minerals, or medical cures. There is a large risk in inverstment but if the company is successful (IE: They find minerals) - the reward will be large. This is the general relationship in economics - the greater the risk, the greater the result. However, if the company is not successful (IE: They don't find minerals) then the investor will be left with a massive loss.