Pure Risk


Also found in: Medical.

Pure Risk

Any risk in which there is no possibility of gain, only the avoidance of loss. For example, if a company car is stolen, the company endures a loss, but if it is not stolen, the company does not make a gain. Individuals and companies purchase insurance to mitigate the potential damage from a loss from pure risk. It is also called absolute risk.
References in periodicals archive ?
Personal, Property and Liability Pure Risk generally are insurable.
From a pure risk standpoint, cards are the way to go.
In engineering, risk is commonly divided into speculative risk of potential economic losses or gains and nonspeculative or pure risk related to damaging phenomena, such as failures and accidents of physical objects as well as disturbances in computer networks and damage to information systems [4].
These are just some of the examples of pure risk management that should be studied and implemented by African governments.
SYED ARIF HUSSAIN: Risk or uncertainty can be divided into: Pure Risk and Speculative Risk.
The Commission examined the competitive effects of the proposed acquisition in a number of life insurance market segments, namely pure risk protection products for individuals and group clients, pension products for individuals and group clients, and the segment for saving and investment products.
Pure risk is the risk of property losses (fire, theft, hurricane) or liability losses.
It was all about financial investments, debentures, derivitatives and similar financial mechanisms - what those of us who had taken the IIA Associate in Risk Management termed "speculative risk" as opposed to pure risk.
Although he admits that from the standpoint of pure risk, the lunchmeat industry has come a long way, Jim Wisner, president of Libertyville, Ill.
Pure and Speculative Risks: Pure risk has two outcomes either a loss or no change.
A number of years ago most insurers stopped marketing their so-called universal products and replaced them with pure risk products and if one wanted to have an investment then that is a separate policy or policy component.
In pure risk no possibility of gain is presented, only the potential for loss.