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.
Pure risks have the possibility of loss or no loss. Speculative risk, on the other hand, has the possibility of gain or no gain.
pure risk are insurable while speculative risk are not insurable
pure risk is the a situation in which there is a possibility of loss or no loss while speculative risk thereeither profit or loss
I think its classified as either pure risk or speculative risk
yes it is a speculative risk.
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 Difference between wholesaler and retailer on the basis risk?
A constraint is a limitation that is visible and present. The difference between a constraint and risk is that a risk is problem that is not yet seen, or a potential problem.
they are the same
Transaction is bank risk
a risk is taking a chance and a benefit is benfiting from it
What risk? Assumed by who?
Reduce the impact of risk is MitigationRemoval of risk is Remediation
explain the difference between formal and informal risk assessments