Which type of risk only allows for profit or loss to occur?

Speculative risk pertains to situations where there is a chance of profit or loss, making it unique compared to other types of risks. In speculative risks, individuals or businesses engage in activities that can lead to financial gain or potential losses. Examples include investments in stocks, real estate ventures, or gambling, where the outcome is uncertain and can result in winning or losing money.

Pure risk, on the other hand, involves scenarios that only result in loss with no possibility of profit, such as theft, fire, or natural disasters. Fundamental risk refers to risks that affect large populations or economies, often due to external factors like economic upheaval or catastrophic events. Particular risk focuses on risks that affect individuals or specific businesses rather than the broader population. Recognizing that speculative risk is the only category to allow for both profit and loss illuminates its distinct nature within risk management contexts.