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 ?
Pure risk involves losses due to physical assets, human resources, legal liabilities and work related injuries.
Just describe the risk management process and tools used by risk managers who are charged with the treatment of pure risk.
With this decision, themanagement team crossed the line from speculative to pure risk.
In many cases, being faced with an adverse reaction from the result of a pure risk can destroy us physically, emotionally and financially.
However, as part of TOWER Limited's move to have TMI as a licensed insurer under New Zealand's insurance prudential supervision regime, beginning October 1, 2012, TMI will be restructured as a direct health insurer, and THL will exclusively concentrate on pure risk life insurance.
Pure risk control techniques include prevention and reduction.
If you set up a big structural captive, there is a bit of an exit barrier to going all the way back to pure risk transfer," he said.
Attitudinal differences toward pure risk are then examined across demographic subgroups.
In this article, first we examine the set of risk management solutions; second, we review the pure risk management solution of prevention--arguably the most important of all our tools.
Several steps to follow in managing the pure risk within a business firm are discussed along with the benefits of risk management and applications of risk management principles to real world problems.
Today, many of the most important trends are linked in some way to the growing tendency to roll pure risk and financial (or speculative) risk into one risk-management program.