Risks that cannot be eliminated nor transferred in the business of an Islamic bank must be ignored by the financial institution.

Question

Quizplus · Accepted Answer

Islamic banks, like any financial institution, must manage risks that cannot be eliminated or transferred by employing various risk management strategies, not ignore them. This includes diversification, setting aside reserves, and implementing robust risk assessment and mitigation practices in accordance with Shariah principles.

Risks That Cannot Be Eliminated nor Transferred in the Business