Topic 6 RM Part 2

What type of risk arises from inadequate or failed internal processes in Takaful companies?

• Investment Risk

• Business Risk

• Fiduciary Risk

• Operational Risk

Which risk is specifically related to the compliance with Shariah principles?

• Operational Risk

• Liquidity Risk

• Fiduciary Risk

• Business Risk

What is the main responsibility of Takaful Operators (TOs) regarding underwriting risks?

• Setting investment strategies

• Conducting market research

• Implementing risk policies

• Managing operational risks

Which of the following is NOT a type of risk faced by Takaful Operators?

• Fiduciary Risk

• Operational Risk

• Business Risk

• Market Risk

What does fiduciary risk arise from?

• Investment losses

• Market fluctuations

• Misconduct or negligence

• Operational failures

What is the objective of liquidity risk management in Takaful companies?

• To minimize operational costs

• To ensure sufficient liquid funds

• To enhance investment returns

• To maximize profits

Which approach is used to hedge liquidity risk in Takaful companies?

• Operational audits

• Credit assessment

• Investment diversification

• Cash flow modeling

What is the role of the Board of Directors (BOD) in fiduciary risk management?

• To conduct market analysis

• To set investment strategies

• To provide oversight and ensure compliance

• To manage daily operations

What is a key factor in managing operational risk in Takaful companies?

• Compliance with Shariah rules

• Investment diversification

• Customer satisfaction

• Market research

What is the purpose of setting tabarru’ levels in Takaful?

• To enhance customer trust

• To minimize operational costs

• To maximize investment returns

• To reflect underwriting risks