Which of the following accurately describes "pure risk"?

The description of "pure risk" aligns with the option that states it is a risk in which there is only a chance of loss. Pure risk refers to situations where there are only two possible outcomes: either a loss occurs, or there is no loss at all. This is distinct from speculative risk, where there is potential for both gain and loss. In pure risk situations, individuals or businesses are concerned primarily with potential negative outcomes, such as natural disasters, accidents, or health-related issues, and these can be insurable risks.

The concept of pure risk is foundational in the field of risk management, emphasizing that it pertains solely to losses without the possibility of profit, which distinguishes it clearly from other types of risk that involve variable outcomes. Understanding this distinction is essential for making informed decisions regarding insurance and risk mitigation strategies.