Which category of risk includes both pure and speculative risks?

The category that encompasses both pure and speculative risks is accurately identified as Risk Categories. Within this framework, pure risks are those that present the potential for loss or no gain, such as natural disasters or accidents, where the outcomes are negative or neutral. In contrast, speculative risks involve the chance of loss or gain, like investments in stocks or entrepreneurial ventures, where outcomes might yield returns or losses.

Recognizing that Risk Categories serves as an overarching classification enables a clear understanding of the nature of various risks businesses may face. This distinction matters because it helps organizations assess their risk exposure effectively, allowing them to implement appropriate risk management strategies. The labeling of risks into well-defined categories aids stakeholders in understanding the different implications associated with the risks they encounter.

The other categories, such as Fundamental, Operational, or Legal Risks, do not inherently incorporate both pure and speculative risks within their definitions, which further supports why Risk Categories is the best choice.