speculative risk



Insurance industry term for a situation where the possibility of either a financial loss or a financial gain exists, such as in purchase of shares or betting on horses. Unlike pure risks, speculative risks are usually not insurable.

Use speculative risk in a sentence

  • You should always break down the speculative risk and figure out if it is worth taking on for this new venture.

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  • We analyzed the speculative risk and concluded that taking a calculated risk at this point was advisable as the upside was huge.

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  • It was a speculative risk, but I still thought we had to take it, because if it worked, we would be a lot better off.

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