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

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.

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.

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15 comments · newest first

Shaun 3 months ago

I see your point. C feels like a clear risk.

Roosevelt 3 months ago

Exactly! C is about safety, not choice.

Emerson 3 months ago

True, but B has some control. C is just dangerous.

Shaun 3 months ago

But B seems risky too. Selling at a loss is tough.

Roosevelt 3 months ago

Agreed, C is pure risk. No control over accidents.

Emerson 3 months ago

I think it's C. Horse riding without a helmet is risky.

Lenna 4 months ago

Buying 100 lottery tickets is just gambling, not pure risk!

Vi 4 months ago

Wait, are we sure about C? Seems risky but not pure risk.

Cecil 4 months ago

Totally agree with C! No helmet is just asking for trouble.

Elouise 5 months ago

I think B is more of a pure risk situation.

Pamela 6 months ago

C is definitely a pure risk.

Afton 6 months ago

I recall that pure risk involves situations where there's no chance of gain, so that makes me lean towards C. But I need to double-check my notes on this!

Stefan 7 months ago

I feel like going horse riding without a helmet is definitely risky, but is it considered pure risk? I might be mixing it up with liability issues.

Tiara 7 months ago

I remember a practice question about risks, and I think buying lottery tickets is more speculative than pure risk. So, it must be B or C.

Zita 7 months 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.

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