Pure risks

Identify critical components that constitute pure risk. 

What is the primary difference between a speculative risk and a pure risk for an individual ... 

Pure risk involves a risk in which there is only the opportunity of sustaining a loss there is no opportunity... 

For a pure risk to be insurable, it must meet certain requirements (Schafermeyer, 2007) ... 

It can be argued that the pure risk of the SCLD alternate method is higher than that of the conventional method, due to the suspended loads, however these risks are mitigated in the rope up procedures, and the design of the equipment, and both methods can be completed with acceptable residual risk. 

Risk management may be defined as the eradication or minimisation of the adverse effects of the pure risks to which an organisation is exposed. 

Pure risks can only result in a loss to the organisation, whereas with speculative risks, either gain or loss may result. 

It should be borne in mind that the division between pure and speculative risks is not absolute. For example, the speculative risk of operating a machine without an adequate guard has a number of pure risks associated with it - injury death prohibition notices prosecution fines loss of profit etc. 

To measure risk, one must calculate the probability of an event (L=likelihood) and determine its possible severity (C=consequences) with respect to defined objectives and values. In the case of pure risk, these parameters may be determined using various data, mainly statistics, e.g. the police or central statistical office data. Such data are used, along with... 

To identify all the pure risks within the business and connected to the operation (hazard identification). 

The business science, which is applied to manage the pure risks of the business. 

A group of techniques for minimizing the adverse effects of pure risks. 

There are two major types of risk pure risks and speculative risks. Pure risks only offer the prospect of loss and speculative risks offer both a chance of gain, or loss. A speculative risk could be the purchasing of stock or investing money in real estate, etc. 

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