CHAPTER 6 Tutorial Risk Management in Islamic Perspectives

What is the definition of risk in the context of this chapter?

• A measure of wealth

• A guarantee of success

• A probability of damage or loss

• A probability of profit

What is the term used for risk in the Islamic concept?

• Rizqah

• Rizq

• Risq

• Raqib

Which of the following is NOT a type of generic risk mentioned?

• Investment risk

• Market risk

• Operational risk

• Credit risk

What does credit risk refer to?

• The risk of market fluctuations

• The risk of a debtor failing to repay a loan

• The risk of currency exchange

• The risk of operational failures

Which type of risk is associated with adverse price movements?

• Liquidity risk

• Market risk

• Credit risk

• Operational risk

What is a potential consequence of market risk in Islamic banking?

• Increased liquidity

• Decreased operational costs

• Loss of asset value

• Guaranteed returns

What is liquidity risk primarily concerned with?

• The risk of non-compliance

• The risk of currency fluctuations

• The inability to meet obligations

• The risk of losing investments

Which of the following is a unique risk in Islamic banking?

• Shariah non-compliance risk

• Credit risk

• Liquidity risk

• Market risk

What does the term 'displaced commercial risk' refer to?

• Risk of operational failures

• Pressure to pay returns exceeding earned rates

• Risk of losing market share

• Risk of currency exchange losses

Which Basel Accord focused on capital adequacy?

• Basel IV

• Basel I

• Basel II

• Basel III