What type of risk is associated with the uncertainty of an event occurring?

The concept of pure risk pertains to situations that involve uncertainty regarding potential losses, where the outcomes are limited to either loss or no loss, but not profit. In the context of insurance and risk management, pure risk is the type of risk that individuals or organizations generally seek to insure against. For example, a home may face the risk of fire or theft; in these scenarios, the only real outcomes are the occurrence of the event (resulting in a loss) or the absence of the event (no loss).

This characteristic differentiates pure risk from other types of risk, such as speculative risk, where there is the potential for gain as well as the possibility of loss. This means that pure risk is associated solely with unforeseen negative outcomes and does not include situations where a benefit might also be realized. Thus, in the given question, the identification of pure risk aligns perfectly with the description of uncertainty about adverse events, supporting it as the correct answer.