In risk management, a situation where a person can only experience loss or no change is referred to as?

In risk management, a situation where a person can only experience loss or no change is referred to as pure risk. This type of risk is characterized by the potential for a loss, with no possibility of financial gain. It encompasses scenarios such as property damage, liability issues, and health-related risks, where the outcome is either a negative event or a state of no loss occurring.

Pure risk is significant in the context of insurance, as it provides the basis for insurable risks, allowing insurers to evaluate and cover potential losses. In contrast, speculative risk involves situations where there is both the potential for loss and the possibility of gain, which is not applicable here.

Assessable risk is not a standard term in risk management, and while controlled risk refers to risks that can be managed or mitigated, neither fits the definition of experiencing only loss or no change. Thus, pure risk is the correct classification for situations limited to loss or no loss.