12 Questions
What is a situation where an outcome is sure to happen?
Certainty
What is defined as an uncertainty about financial loss from an exposure?
Risk
What is a condition that can increase the chance of loss?
Hazard
What is a character defect in an individual that increases the chance of loss?
Moral Hazard
What is the financial impact of an uncertain event?
Loss
What is the cause of loss?
Peril
What type of hazard refers to an attitudinal defect in an individual that increases the chance of loss with the knowledge that insurance exists?
Morale hazard
What is the term used in Islamic terms to describe risk?
Ghurm
What are the two types of risks implied by the term ghurm in business activities?
Market risk and financial risk
What is the result of moral hazard?
Setting fire to one’s own premises
What is the consequence of all risks in the context of Islamic Insurance?
Depreciation or loss in economic value of an asset
What type of hazard is characterized by large damage awards in liability lawsuits?
Legal hazard
Test your understanding of the fundamentals of risk, including the concept of certainty and uncertainty, and the concept of loss and its measurement. This quiz covers the basics of risk and its importance in risk and takafal management.
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