Risk taking responsibility Risk taking responsibility is among the main issue in Shariah compliant transaction. In any Shariah compliant sale, the seller must take a risk to entitle him the profit gained from the transaction. The risk is the conter value of the profit earned. One of the fiqh maxims in Islam is “Al- Ghorm bil Ghonm” which means the profit must come with responsibility of risk. If a seller does not want to be exposed to any risk, thus he is not entitling for the profit gained from the transaction. Another Fiqh Maxim is “Al- Dhoman bil Kharaj” which also means that any profit must come along with responsibility of risk. For example, a car dealer should bear the risks of damage, loss or maintenance cost occurred during the time the car is in his possession. After the sale, the risks are transferred to the new owner. On the contrary of Shariah compliant sale, Riba’ based transaction is not concern on this issue. Since they are not trading the commodity, they have no concern on the responsibility of risk as mentioned by Islam. In trading money, they are not bound to any risk of damage, loss or maintenance of the property. For example, a seller in riba’ based transaction will only facilitate the buying of a house by giving loan to the borrower. Thus, from the start, the borrower is entitled the risk associated with the house, not the lender. As practiced by conventional banks nowadays, they will only bear the risk of holding money. The risks associated with the house will not be entitled to the bank, but it is the responsibility of the borrower. In this transaction, the lender earns a profit without any counter value, which is the risk. This will make their profit questionable as it is earned out of a thin air.
Posted on: Fri, 28 Jun 2013 17:59:10 +0000
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