An Islamic Perspective on Risk

The whole discipline of finance revolves around the study of risk. Insurance exemplifies another field where the study of risk is the core of the whole industry.

However, if we survey how risk was handled theoretically we find that there are three aspects to the study of risk.Risk in the decision making process:

In every decision we take, we seek an outcome that will, hopefully, take place shortly or longly after that, decision has been taken. However, we know that there are always "forces" that may not allow the outcome to materialize the way we intended for it to be. Some of these forces are well known to us, others are mysterious and may remain beyond comprehension. But we know they are there. This aspect of risk is not new, rather humans hav...