Which of the following refers to the potential loss or gain associated with a risk?

The concept that refers to the potential loss or gain associated with a risk is known as risk exposure. This term encompasses the measurement or analysis of how much an entity stands to lose or gain due to a particular risk. In the context of title insurance and real estate transactions, understanding risk exposure is crucial because it helps insurers assess the likelihood and extent of financial consequences should a title defect or other issue arise.

Risk assessment, while related, deals more with the evaluation process of identifying risks and determining their significance, rather than explicitly detailing the potential outcomes in terms of loss or gain. Risk potential could be interpreted as a synonym to risk exposure but is not a widely recognized term in this context, making it less applicable. Lastly, risk management refers to the strategies and processes developed to mitigate or control risks, which is a broader practice encompassing various aspects of dealing with risk rather than focusing specifically on potential losses or gains.