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 ?
At a typical 90% indemnity, the company would have received an upfront reimbursement of $900,000 and simply taken the risk on their profit in the sale, From a pure risk mitigation standpoint, implementing the protection is an easy decision to make.
"Insurance by itself is pure risk transfer," said George Forrester, a principal at AHT Insurance.
Pure risk is present in situations where there can only be a loss.
Pure Risk Events: Two possible future states of the world:
"From a pure risk standpoint, cards are the way to go.
Each of these core management accounting competencies focuses on enabling sound decision making and, as such, represents pure risk management activities.
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.
It is a pure risk cover which in case of an untoward incident pays Rs 2 lakh to the family of the deceased as claim money.
SYED ARIF HUSSAIN: Risk or uncertainty can be divided into: Pure Risk and Speculative Risk.
Faced with this decline in market conditions and in an effort to curb competition in the market, Chinese regulators introduced a series of guidelines to standardize market competition around the pure risk loss rate and risk unit classification.
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.