What type of risk is characterized by a chance of loss only and is insurable?

The correct answer is based on the definition of different types of risk in the context of insurance. Pure risk is characterized by situations that can result only in a loss or no loss; there is no possibility for gain. This type of risk involves events such as fire, theft, and natural disasters, where the outcomes lead strictly to either a detrimental situation or a state of no damage—hence, it is insurable.

In contrast, speculative risk involves scenarios where there is both a chance for loss and a chance for gain. This means that speculative risks are not insurable because they entail uncertainties that can lead to positive outcomes.

Inherent risk refers to the natural exposure to risk that exists in certain activities or situations without any controls in place, often associated with the nature of the business or environment itself.

Operational risk pertains to risks that arise from the internal processes of a business, including failures caused by people, systems, or external events. This form of risk may also result in losses, but it does not strictly fit the definition of pure risk as it's often tied to business performance rather than insurable events.

Thus, pure risk's features of being insurable and having only loss or no loss outcomes make it the correct choice.