Which type of risk is characterized by the possibility of loss only, with no opportunity for gain?

Pure risk is characterized by the possibility of loss only, with no opportunity for gain. This type of risk is associated purely with situations that can result in a negative outcome or loss, but do not provide any potential for profit or advantage. Examples of pure risk include events such as natural disasters, theft, and accidents, where the only outcomes can be damaging, leading to a loss.

In contrast, speculative risk involves situations where there is both the potential for gain and the possibility of loss, such as investing in the stock market or starting a new business venture. These risks are often embraced by individuals and businesses seeking to make a profit, in addition to facing the risk of loss.

Pandemic risk and market risk also pertain to specific areas, with pandemic risk focusing on health-related crises and market risk linked to financial fluctuations. However, both do not fit the definition of pure risk, as they can involve various outcomes, and thus do not exclusively focus on the possibility of loss.