Shari’ah risk management framework for Islamic financial institutions

In addition to systematic and unsystematic risks faced by traditional financial institutions, Islamic banks are widely exposed to Shari’ah risks with regards to the needs for ensuring Shari’ah compliance of its operational activities and financial products. In order to mitigate these additional ri...

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Main Author:	Hassan, Rusni
Format:	Article
Language:	English English
Published:	ISTAC 2015
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/47147/ http://irep.iium.edu.my/47147/ http://irep.iium.edu.my/47147/1/04._RUSNI_HASSAN.pdf http://irep.iium.edu.my/47147/4/47147_Shari%27ah_risk_management_framework_for_islamic_financial_institutions_WOS.pdf

id	iium-47147
recordtype	eprints
spelling	iium-471472016-07-19T00:06:49Z http://irep.iium.edu.my/47147/ Shari’ah risk management framework for Islamic financial institutions Hassan, Rusni HG Finance In addition to systematic and unsystematic risks faced by traditional financial institutions, Islamic banks are widely exposed to Shari’ah risks with regards to the needs for ensuring Shari’ah compliance of its operational activities and financial products. In order to mitigate these additional risks, IFIs are urged to establish a comprehensive Shari’ah risks management tool that can help them to monitor their banking, financing and investment activities in conformity with Shari’ah principles and hence enhance their sustainability in the long run. Therefore, the objective of this paper is to contribute to the discussion on the development of the Shari’ah risk management framework for IFIs. This paper refers to Islamic primary sources of knowledge, the Quran and hadith in scrutinizing the permissibility of risk management practices by IFIs. The processes that take place in Shari’ah risk management; (i) risk identification; (ii) risk measurement and; (iii) risk monitoring/controlling are then thoroughly discussed. This paper hopes to shed some light on the importance of having a comprehensive standard of procedures in performing Shari’ah risk management function. ISTAC 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47147/1/04._RUSNI_HASSAN.pdf application/pdf en http://irep.iium.edu.my/47147/4/47147_Shari%27ah_risk_management_framework_for_islamic_financial_institutions_WOS.pdf Hassan, Rusni (2015) Shari’ah risk management framework for Islamic financial institutions. Al-Shajarah (SpeciaI Issue). pp. 67-86. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Hassan, Rusni Shari’ah risk management framework for Islamic financial institutions
description	In addition to systematic and unsystematic risks faced by traditional financial institutions, Islamic banks are widely exposed to Shari’ah risks with regards to the needs for ensuring Shari’ah compliance of its operational activities and financial products. In order to mitigate these additional risks, IFIs are urged to establish a comprehensive Shari’ah risks management tool that can help them to monitor their banking, financing and investment activities in conformity with Shari’ah principles and hence enhance their sustainability in the long run. Therefore, the objective of this paper is to contribute to the discussion on the development of the Shari’ah risk management framework for IFIs. This paper refers to Islamic primary sources of knowledge, the Quran and hadith in scrutinizing the permissibility of risk management practices by IFIs. The processes that take place in Shari’ah risk management; (i) risk identification; (ii) risk measurement and; (iii) risk monitoring/controlling are then thoroughly discussed. This paper hopes to shed some light on the importance of having a comprehensive standard of procedures in performing Shari’ah risk management function.
format	Article
author	Hassan, Rusni
author_facet	Hassan, Rusni
author_sort	Hassan, Rusni
title	Shari’ah risk management framework for Islamic financial institutions
title_short	Shari’ah risk management framework for Islamic financial institutions
title_full	Shari’ah risk management framework for Islamic financial institutions
title_fullStr	Shari’ah risk management framework for Islamic financial institutions
title_full_unstemmed	Shari’ah risk management framework for Islamic financial institutions
title_sort	shari’ah risk management framework for islamic financial institutions
publisher	ISTAC
publishDate	2015
url	http://irep.iium.edu.my/47147/ http://irep.iium.edu.my/47147/ http://irep.iium.edu.my/47147/1/04._RUSNI_HASSAN.pdf http://irep.iium.edu.my/47147/4/47147_Shari%27ah_risk_management_framework_for_islamic_financial_institutions_WOS.pdf
first_indexed	2023-09-18T21:07:07Z
last_indexed	2023-09-18T21:07:07Z
_version_	1777411007195381760

Shari’ah risk management framework for Islamic financial institutions

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