BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reduce Unnecessary Risk
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Adhered to Islamic Teaching on Risk
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Sharing Healthy Risk Together
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To Have a Proper Risk Mitigation
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Managing The Risk Ethically
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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: -The unique business ethics of Islamic finance touch on the absence of Riba in transactions; the avoidance of Haram activities; non-participation in excessive risk-taking and speculative activities; prohibition in dealing with forbidden items such as alcohol, pork, and pornography.
Detailed explanation-3: -The main principles of Islamic finance are that: Wealth must be generated from legitimate trade and asset-based investment. (The use of money for the purposes of making money is expressly forbidden.) Investment should also have a social and an ethical benefit to wider society beyond pure return.
Detailed explanation-4: -Thus, Islam encourages us to manage risk as long as it does not involve any practices prohibited by gharar, chance, the charging of interest or injustice. Nor must it be carried out merely for reasons of profit.