What Is Pure Risk?

Pure risk refers to the risk that has only loss and no opportunity for profit, such as the damage and depreciation of corporate assets, the loss caused by legal liabilities caused by failure to perform an obligation, and the damage to personal safety is pure risk.

Pure risk

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Transferring risks refers to transferring some or all of the risks you face to another party through some arrangement. Guaranteed by transferring risk is the most widely used and effective risk management method. Insurance is one of the risk management methods for transferring risk.