What type of risk exclusively presents the possibility of loss?

Pure risk is characterized solely by the potential for loss without the possibility of gain. In the context of insurance and risk management, pure risks are those risks that result in only negative outcomes, such as accidents, natural disasters, or theft, where the worst outcome involves losing something of value.

On the other hand, speculative risk involves scenarios that can result in either gain or loss, such as investments in the stock market or starting a new business. Investment risk, a subset of speculative risk, specifically pertains to the uncertainty of returns on investments. Operational risk relates to potential losses resulting from inadequate or failed internal processes, systems, or external events, but it does not exclusively address the possibility of loss without any chance of gain.

Thus, pure risk is the correct answer because it aligns perfectly with the definition of risk that exclusively involves the chance of incurring a loss, with no accompanying potential for profit.