Speculative Risk: Risk that has the potential for loss, the potential for gain or the potential for no change.
The possibility of gain or loss, depending upon the success or failure of the financial or commercial venture in question (speculative risks). Banks also accept risks when they make loans, which may either be repaid or defaulted.
There also must be a pure risk of loss (loss or no loss) as opposed to a speculative risk (gain, loss or no loss). Business risk, investment risk, and asset risk are subcategories of speculative risk.
These are conditions, including fires, natural disasters, and liability, where the need for insurance coverage is clearly indicated as there is only the risk of loss with no possibility of beneficial gain.Contrast with speculative risk .
 See also: Saving, Banks, Reinsurance, Indemnity, Tax deduction
  
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