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Welcome To: Risk Management in Islamic Financial Institutions

This document provides an overview of a course on risk management in Islamic financial institutions. The course aims to help students identify, analyze, and evaluate various risks within Islamic finance like credit, market, liquidity, operational, and Shariah non-compliance risks. It will also examine risk management frameworks and regulations. Assessment methods include exams, projects, quizzes, and students will learn risk mitigation techniques and their application to Islamic finance contracts. References include books and papers on risk management and Islamic banking.

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147 views7 pages

Welcome To: Risk Management in Islamic Financial Institutions

This document provides an overview of a course on risk management in Islamic financial institutions. The course aims to help students identify, analyze, and evaluate various risks within Islamic finance like credit, market, liquidity, operational, and Shariah non-compliance risks. It will also examine risk management frameworks and regulations. Assessment methods include exams, projects, quizzes, and students will learn risk mitigation techniques and their application to Islamic finance contracts. References include books and papers on risk management and Islamic banking.

Uploaded by

amalazham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Welcome to

RISK MANAGEMENT IN
ISLAMIC FINANCIAL INSTITUTIONS

Dr. Omar Alaeddin

Bachelor of Business Administration(Hons.) in Islamic Finance


2017
Senior Lecturer
Dr. Omar Alaeddin Syria
[email protected]

2004 2007 2009 2010 2012 2015

BBA Master CIFP PhD


Learning Outcomes:
 
Upon completion of the course, students should be able to:

1.Identify the key risks existing within the Islamic Finance. (C2, C3);

2.Analyze the framework for Risk analysis in Islamic financial system


and banking regulations. (C4, C5);

3.Explain the aspects of quantitative and qualitative analysis of


different type of risk. (C4, C3);
4.
4.Describe the key factors that affect the financial risk. (C3, C4); and

5. Evaluate and apply the risk management methods in the current


Islamic finance contracts and its mitigations. (C5, C6)
Assessment Methods and Types:

Mid-term Examination 20%

Group Project 30%

Online Quiz 10%

Final Exam 40%

Total 100%
Contents of the subject
1 An overview of  
Risk Management: Basic Concepts and Techniques
6 Other types of Risks
Risk management process
Liquidity risk Management;
 
Operational risk Management
2 Framework for Risk Analysis in Islamic financial system Shariah non-compliance risk
Principles of Islamic Financial system, Shariah compliant parameter
Concept of Risk in Islam;  
 
7 Bank regulations (Basel II and IFSB);
3 Risk management for the IF contracts and activities. Capital Adequacy
Murabaha, Mudarabah, musharakah, etc
 
 
8 Risk mitigating instruments in IFI
4 Credit Risk Management;
Derivatives instruments
Expected and unexpected loss
Applied credit risk in BBA
(Shariah-compliant swap, forward and
  hedging )
5 Market Risk Management;  
Displaced Commercial Risk, Income Gap analysis. 9 Issues in RM for Islamic finance
Equity investment risk, Rate of return risk Crises in Islamic finance.
Banking Supervision, Corporate Governance,,,
References
Compulsory
 Risk Management in Islamic Financial Institutions, Khadijah Iskandar, IBFIM, 2014.

Additional
 
 Risk Analysis for Islamic Banks, Van Greuning, Hennie & Iqbal, Zamil, The World Bank, 2008
 Financial risk management for Islamic banking and finance, ioannis Akkizidis, sunil kumar
khandelwal, polgrave, 2008.
 ISLAMIC FINANCIAL SYSTEM - Principles & Operations, ISBN: 978-967-349-127-8, ISRA, 2011.
 Draft Risk Management Guidelines for Islamic Banking Institutions, State Bank of Pakistan, Islamic
Banking Department.
 Islamic Financial Services Board (IFSB) (2005). Guiding Principles of Risk Management for
Institutions (Other than Insurance Institutions) Offering only Islamic Financial Services.
 Chapra, M., Umer & Khan, Tariqullah. Regulation and Supervision of Islamic Bank, Jeddah: IRTI.
Retrieved From: http://www.sbp.org.pk/departments/idb/Regulation_Supervision.pdf.
 Khan, Tariqullah and Habib Ahmed. Risk Management: An Analysis of Issues in Islamic Financial
Industry, Jeddah: IRTI. http://www.sbp.org.pk/departments/idb/Risk_Management.pdf
 Kahf, M. (2006). Innovation and Risk Management in Islamic Finance: Shariah Considerations.
Paper Prepared for the Seventh Harvard International Forum on Islamic Finance.
 Saiful Azhar Rosly, Shariah Compliant Parameters Reconsidered, (INCEIF),Paper presented at the
Annual Malaysian Finance Association Conference, Malaysia 4th – 5th June 2008

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