GAQM ISO-31000-CLA Exam - Topic 7 Question 25 Discussion

Actual exam question for GAQM's ISO-31000-CLA exam

Question #: 25
Topic #: 7

[All ISO-31000-CLA Questions]

From the three actions Tom Brown is undertaking, which is categorised as a pure risk?

ABuying 100 lottery tickets

BSelling his house even though he receives less than he paid for it because he thinks prices will fall further.

CGoing horse riding without wearing a riding helmet.

Show Suggested Answer

Suggested Answer: C

According to1, page 9, pure risk is ''a situation where there are only two possible outcomes: loss or no loss''. Buying lottery tickets and selling a house are examples of speculative risk, where there is a possibility of gain or loss. Going horse riding without a helmet is an example of pure risk, where there is only a possibility of loss (injury) or no loss.

by Leota at Apr 02, 2026, 08:18 PM

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Zita

2 days ago

I think pure risk is something that can only result in a loss, so maybe it's C? But I'm not entirely sure.

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