Which type of risk involves the potential for loss with no possibility for gain?

Pure risk is characterized by situations that involve the potential for loss without any opportunity for financial gain. This type of risk is typically associated with scenarios such as natural disasters, illness, or accidents, where the outcomes can only result in a loss or no change at all, rather than a profit.

Understanding the distinction between pure risk and other types of risk is crucial. Speculative risk, for example, involves situations where there is potential for both loss and gain, such as investing in the stock market. Adverse risk relates more to situations that arise from bad decisions or poor choices, whereas morale risk pertains to an individual's carelessness or lack of concern that could lead to a loss. Thus, pure risk is solely focused on the downside, making it the correct identification for the question posed.