Which term represents a risk that is not insurable due to the possibility of financial gain?

The term that denotes a risk that is not insurable due to the potential for financial gain is speculative risks. Speculative risks involve scenarios where an individual or entity can either gain or lose financially depending on the outcome, such as investments in stocks or real estate. Since these risks are associated with the possibility of profit, insurance companies typically do not cover them, as their purpose is to provide protection against losses rather than to engage in economic opportunities.

Pure risk, on the other hand, involves situations that can only result in a loss or no loss (e.g., natural disasters, theft), making it insurable. Retention refers to a risk management strategy where individuals or organizations accept the risks themselves rather than transferring them to an insurance company. Inherent risk relates to the exposure to danger that exists in certain situations but does not specifically capture the concept of insurability based on the potential for profit. Therefore, speculative risks are clearly distinguished as uninsurable due to their nature involving the chance for financial gain.