CAF-7 · Chapter 10 · Question 1 of 15
Which of the following scenarios is a classic example of an operational (pure) risk rather than a strategic (speculative) risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A fire breaking out at the company’s main manufacturing facility
Explanation
Pure (operational) risks only offer the possibility of a loss (like a fire, theft, or machinery breakdown). Speculative (strategic) risks offer the possibility of both profit and loss, such as launching a new product.
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