Insurance is NOT intended to protect against which of the following?

Insurance is designed specifically to protect against risks that are insurable, which typically involve pure risks. A pure risk means there is a possibility of loss with no possibility of gain, such as damage from a fire or theft. By contrast, speculative risk includes situations where there is a chance for loss or gain, such as investing in the stock market or starting a business. This type of risk is not suitable for insurance coverage because it inherently involves uncertainty that could lead to profit, making it uninsurable.

Insurable risk is defined as a risk that meets certain criteria, such as being measurable, statistically predictable, and having a manageable level of loss. Operational risks relate to the possibility of loss resulting from inadequate or failed internal processes, people, or systems, but they can often be covered by insurance depending on the specific circumstances and terms of the policy.

Thus, the correct choice is speculative risk, as insurance is not intended to cover situations where both profit and loss are possible, emphasizing how insurance functions predominantly through the management of pure risks.