What is a common characteristic of a pure risk?

A common characteristic of pure risk is that it only results in a loss or no loss. This type of risk is associated with situations where the outcomes can only be negative or neutral, meaning there is no potential for financial gain. Examples of pure risks include events like natural disasters, theft, or liability claims, where the worst outcome is a loss, and there is no opportunity for profit or gain.

In contrast, other types of risks, such as speculative risks, involve chances of loss or gain and are often linked to investments or entrepreneurial ventures. Therefore, the nature of pure risk is distinctly non-speculative, focusing solely on the potential for loss.