speculative risk
Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss.
All speculative risks are undertaken as a result of a conscious choice. Almost all financial investment activities are examples of speculative risk, because such ventures ultimately result in an unknown amount of success or failure.
Speculative risk can be contracted with pure risk, a category of risk in which the only possible outcome is loss.
This was last updated in April 2014
