Which term means the possibility of a positive or negative outcome arising from a given set of circumstances?

Which term means the possibility of a positive or negative outcome arising from a given set of circumstances?

• A. Occurrence
• B. Risk
• C. Peril
• D. Pure risk

Answer: (B)

Risk is the possibility of a positive or negative outcome arising from a given set of circumstances. It captures the uncertainty about what will happen and includes both upside and downside possibilities. This makes it the best fit here because the other terms describe narrower ideas: an occurrence is just an event; peril is a specific cause of loss; pure risk refers to situations with only loss or no loss, with no potential for gain. So risk best describes the range of possible outcomes from the circumstances. For example, launching a new product carries risk: it could succeed (positive outcome) or fail (negative outcome).

Risk is the possibility of a positive or negative outcome arising from a given set of circumstances. It captures the uncertainty about what will happen and includes both upside and downside possibilities. This makes it the best fit here because the other terms describe narrower ideas: an occurrence is just an event; peril is a specific cause of loss; pure risk refers to situations with only loss or no loss, with no potential for gain. So risk best describes the range of possible outcomes from the circumstances. For example, launching a new product carries risk: it could succeed (positive outcome) or fail (negative outcome).