What are pure risks?

Pure risks are defined as risks that present the possibility of loss or no loss, but do not involve the chance of financial gain. This type of risk is typically associated with events that can lead to a loss, such as natural disasters, theft, illness, or accidents, but these events do not offer any opportunity for benefit or profit.

In contrast, other types of risks might involve potential for gain, such as business investment risks where there is a chance for both profit and loss. The understanding of pure risks is crucial in risk management because it helps organizations devise strategies to mitigate losses and protect against adverse outcomes, since these risks are inherently inevitable.

The other choices do not accurately reflect the definition of pure risks. While some risks may be avoidable, many pure risks are not, and pure risks can affect various types of assets, not just personal ones. This makes the correct identification of pure risks important for effective risk assessment and management.