A peril can best be described as:

A faulty wiring system in a building is an example of a:

Which of the following is a type of pure risk?

Which type of probability relies on historical data and the law of large numbers?

Which of the following statements best describes risk management?

From an Islamic perspective, risk management should:

One of the objectives of risk management is to:

The frequency of loss in risk evaluation refers to:

Which of the following is an example of risk control technique?

When a company spreads its assets across multiple locations to reduce potential loss, it is practicing:

Establishing a captive insurance company is an example of:

Contractual transfer means:

Which of the following statements is true about risk management?

What is the first step in the risk management process?

Risk always implies the possibility of both gain and loss.

Peril is the immediate cause of loss, while hazard increases the likelihood of loss.

A moral hazard arises from an individual’s carelessness because insurance exists.

Empirical probability is calculated based on historical experience.

Pure risk is uninsurable because it involves speculation.

Fundamental risk affects society as a whole and cannot be controlled.

Non-financial risk outcomes can easily be measured in monetary terms.

Risk management ensures the survival and progress of an organization.

In Islam, risk management must align with moral and Shariah principles.

The first step in the risk management process is evaluating potential risks.

Severity of loss refers to how often a loss occurs.

Risk avoidance means continuing activities but minimizing the impact of loss.

Loss control techniques aim to reduce the frequency and severity of losses.

Self-insurance means setting aside internal funds to cover potential losses.

The evaluation and review stage in risk management ensures that techniques remain effective over time.