INS200 C2(1)

What is the purpose of risk management?

• To create obstacles for the organization

• To enable an organization to progress toward its goals and objectives

• To increase the negative effects of risks

• To maximize the utilization of resources

What are some external factors driving the need for risk management in an organization?

• Globalization

• Technological advancements

• Climate changes, political uncertainties, economic forces

• Social media trends

According to Islamic perspective, what should be the aim of risk management?

• Minimize the utilization of resources

• Maximize the negative effects of risks

• Reduce the negative effects of risks or maximize the opportunities and goals

• Ignore the goals aligned with the Shariah

What is the main objective of risk management before a loss occurs?

• Survival of organization

• Required by law

• Stability of earnings

• Reduce fear and worry

What is the main objective of risk management after a loss occurs?

• Survival of organization

• Reduce fear and worry

• Required by law

• Reduce impact of loss

What is the first step in the risk management process?

• Risk Control

• Risk Assessment

• Risk Financing

• Risk Identification

What is the main purpose of risk control?

• To avoid risks altogether

• To transfer risks to other parties

• To reduce the frequency and severity of losses

• To increase the frequency and severity of losses

What is the main purpose of loss control?

• To reduce the severity of losses

• To increase the number of losses

• To transfer risks to other parties

• To avoid risks altogether

What is the main purpose of loss prevention?

• To avoid risks altogether

• To increase the number of losses

• To reduce the severity of losses

• To transfer risks to other parties

What is the main purpose of risk financing?

• To transfer all risks to other parties

• To retain all risks within the organization

• To retain, transfer, or finance risks

• To finance the occurrence of risks