 In this module, we would continue with our discussion on risk management in Islam. Question arises in an Islamic economic context, how the risk can be managed? There could be three broad ways of dealing with risk. The first one is by way of avoiding it. As we looked at risk, it's a bad thing. If we can avoid it altogether, that is the best thing. However, if risk is inevitable in certain activities, then measures could be taken to minimize its incident. At least, at least, at least it should be done. And in certain circumstances, it is possible, and this is the recommendation of Islamic economics, that risk can be managed by sharing it. For all these three ways of dealing with interest, there are ways and instruments of doing it. Let us look at the examples of avoiding risk. Prohibition of gambling. Juwe ki momanat. This is an obvious example of managing risk by avoiding it. In Islam, there is no provision for gambling a bit. Whether you are betting 1 rupee or 1 crore rupees, this is prohibited. So, this complete prohibition of gambling is one obvious example of dealing with interest in Islam by way of avoiding it. Prohibition of buying options. Now, options are financial products. This is another example of managing risk by avoiding it. So, if there is an option contract on a share listed on New York Stock Exchange, and this option contract is being sold by Merrill Lynch, an American investment bank, this is not possible from a Sharia viewpoint. So, complete prohibition of conventional options. This is one way of managing with the risk by way of avoiding it. Now, those of you who are familiar with options, you may argue that in the conventional framework, buying and selling insurance is actually a way of managing risk. Probably you are right, but in an Islamic context, this particular example tells us that Islam prohibits buying options and selling them in an attempt to make sure that you avoid risk. Another fundamental example is that of prohibition of riba, prohibition of charging interest. This is another example of managing risk by avoiding it. What do we mean by that one? It is basically when someone is getting money in the form of loan, then the possibility of paying more, actually the compulsion of paying more, and in fact this payment, more payment may not be possible, that is a risk. Hence prohibition of riba, that is actually an example of dealing with the risk by way of avoiding it. Prohibition of selling something that someone does not own is another such example. Prophet sallallahu alaihi wa sallam in one hadith said, la tabia maa laisa aindak or maa laisa ladai, which means that do not sell something which you do not have or you do not own. Why? Because if you have sold something which you do not own and you have taken the price and you do not have ability to deliver it, then you are in trouble. So, this is another example of avoiding risk by as an example as a tool of risk management. So, I have given 1, 2, 3 and 4 examples of dealing with risk by way of avoiding it. Now, let us look at this picture. Person B offers to person A, so this person B offers to person A this statement, you pay me 10 dollars and I shall throw the dice. If it is number 6, I shall pay you 100 dollars. Otherwise, I retain 10 dollars and you and pay you nothing. This is a typical case of gambling which I mentioned in the previous module, but I am repeating it to ensure that you understand that this is the case of selling a risky situation to someone for a price. This is obviously prohibited. So, in this module, we have looked into the possibility of managing risk by way of avoiding it altogether, although there are other ways of dealing with risk by way of either managing it or by way of sharing it.