BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Management
|
|
|
Risk management department
|
|
|
Board of director
|
|
|
Internal audit
|
Detailed explanation-1: -What Are the Main Objective of Islamic Financial Institutions in Regard to Risk Management? To Maximise Profit and Shareholder Value by Providing Different Financial Services Mainly by Managing Risks Within Shariah Parameter. To Understand the Risk or Return Trade-Off.
Detailed explanation-2: -In Islamic financial transaction the concept of risk management is based on the objective of Shari’ah, i.e. protection of wealth. This is to uphold the well-being of humanity and universal prosperity.
Detailed explanation-3: -The goal is to rid the firm of risks that are unessential to the financial service provided or to absorb only an optimal quantity of a particular risk.
Detailed explanation-4: -The Islamic Financial Services Board (IFSB, 2005) recognises six major types of risks: credit risk, equity investment risk, market risk, liquidity risk, rate of return risk, and operational risk.