What type of risk involves the possibility of gain or loss?

Speculative risk involves situations where there is a chance of either gain or loss. Unlike pure risk, which only presents the possibility of loss with no potential for gain, speculative risk encompasses scenarios such as investments in stocks or starting a new business, where the outcomes can vary significantly, leading to profit or loss. This type of risk is intrinsic to entrepreneurial activities, where individuals weigh the potential rewards against the risks they are willing to take.

Other types of risks mentioned do not fit this definition. Pure risk is solely about loss, insurable risk pertains to risks that can be covered by an insurance policy, and commercial risk generally refers to risks faced by businesses which may include both pure and speculative elements but does not specifically highlight the potential for both gains and losses in the same manner as speculative risk.