BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To Maximise Profit and Shareholder Value by Providing Different Financial Services Mainly by Managing Risks Within Shariah Parameter.
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To Understand the Risk or Return Trade-Off.
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To Utilising Financial Products to Hedge Against Risk (Such as Using Options, Futures, Insurance).
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To Have Proper Valuation Methodologies to Assess Quality of Investments and Determine the Allocations and Expected Returns.
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Detailed explanation-1: -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-2: -The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) oversees Islamic banking to ensure its members follow the rules and prohibitions established by Shari’ah law.
Detailed explanation-3: -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-4: -To contribute towards economic development and prosperity within the principles of Islamic justice; Optimum allocation of scarce financial resources; and. To help ensure equitable distribution of income.