QUESTION 2 (25 Marks) Risks are managed through a process called risk management. Risk management is a structured approached to managing uncertainty related to a threat that could affect assets and earnings of a business or an individual through a sequence of human activities. REQUIRED: a. Briefly discuss the concept of 'risk sharing' of risk management in the Islamic point of view. [6 Marks] b. Provide a short note that include a scenario for each of the following terms: i. Risk severity and risk frequency ii. Liability risk exposure and property risk exposure iii. [12 Marks] c. Riba' is one of the elements of insurance contracts and practices that are prohibited in Islam. Discuss the term 'riba" and explain how this element exist in the conventional insurance contracts and practices. [7 Marks] QUESTION 3 (25 Marks) A family takaful plan, provides protection with a long-term saving and investment program. It provides mutual financial assistance among its participants through a financial program that pools efforts to help the needy due to untimely death and other mishaps resulting in personal injury or disablement. REQUIRED: a. Compare and contrast the Al-Mudharabah model and AI-Wakalah model for family takaful. [10 Marks] b. Explain three (3) relevant factors to be considered in choosing a family takaful plan. [6 Marks] c. Explain three (3) benefits of each family takaful annuity plan and family takaful investment-linked plan. [9 Marks]