Which type of risk involves risk with the potential for both benefits and losses?

Question

Quizplus · Accepted Answer

Dynamic risk involves the potential for both benefits and losses, as it exists in situations with uncertain outcomes that could have positive or negative impacts. Pure risk, on the other hand, involves only the possibility of losses, while realistic risk and acceptable risk are not commonly used terms in the field of risk management. Dynamic risk involves both the potential for benefits and losses, as it arises due to changes in the environment, market, or other factors beyond the control of the individual or organization. Pure risk only involves the potential for losses, realistic risk is not a commonly recognized term in risk management, and acceptable risk refers to a level of risk that is considered tolerable or manageable.

Which Type of Risk Involves Risk with the Potential for Both