What term is used for the risk that is intentionally accepted by an individual or organization?

The term that refers to the risk that is intentionally accepted by an individual or organization is known as "calculated risk." This type of risk involves a conscious decision to engage in a situation that carries potential negative outcomes, but where those outcomes are evaluated and deemed manageable or acceptable.

Individuals or organizations may take calculated risks after careful assessment of the potential benefits compared to the risks involved. For instance, a business may decide to launch a new product despite the uncertainties because they have conducted market research, analyzed financial implications, and are prepared for possible failures.

In contrast, speculative risk involves situations where the outcome can be either a loss or gain, often tied to investments or gambling. Pure risk only presents the possibility of loss and has no opportunity for gain, such as in the case of natural disasters. Inherent risk is the exposure to danger that exists naturally in specific activities or environments.

Understanding the various types of risks helps individuals and organizations make informed decisions about which risks are worth taking based on their objectives and risk tolerance.