Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010

Shariah compliance is the backbone of Islamic banks. As an institution established within the ambit of Shariah, Islamic banks are expected to ensure that their aims, activities, operations and managements adhere to the Shariah principles and values. Failure to comply with Shariah, will expose Islami...

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Main Authors:	Hassan, Rusni, Othman, Ahmad Azam, Omar, Muhammad Naim, Mohd Napiah, Mohammad Deen, Abdiullah, Muhamad Asmadi, Arifin, Mahamad, Yusoff, Adnan, Mohd Karim, Muhammad Syahmi
Format:	Conference or Workshop Item
Language:	English
Published:	2015
Subjects:	HG Finance KPG Malaysia
Online Access:	http://irep.iium.edu.my/49149/ http://irep.iium.edu.my/49149/ http://irep.iium.edu.my/49149/1/49149.pdf

id	iium-49149
recordtype	eprints
spelling	iium-491492018-10-24T01:22:21Z http://irep.iium.edu.my/49149/ Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010 Hassan, Rusni Othman, Ahmad Azam Omar, Muhammad Naim Mohd Napiah, Mohammad Deen Abdiullah, Muhamad Asmadi Arifin, Mahamad Yusoff, Adnan Mohd Karim, Muhammad Syahmi HG Finance KPG Malaysia Shariah compliance is the backbone of Islamic banks. As an institution established within the ambit of Shariah, Islamic banks are expected to ensure that their aims, activities, operations and managements adhere to the Shariah principles and values. Failure to comply with Shariah, will expose Islamic Financial Institutions (IFIs) to Shariah non-compliance risk. Subsequently, it is an essential duty of the IFIs to manage Shariah risk properly. In order to effectively manage the risk vulnerability of the IFIs, proper measures for risk management have been put in place on different frameworks that are either domestic or international based. In the Malaysian context, IFIs are guided by relevant regulations such as the Shariah Governance Framework 2010, IFSB principles and Islamic Financial Services Act 2013 as regards to Shariah Risk management. This present research examines the regulatory requirements on the Shariah risk management process for Islamic financial institutions that operate in Malaysia, in the context of the Guidelines on Shariah Governance Framework 2010 issued by the Central Bank of Malaysia. The paper will discuss the concept of "risk", "Shariah risk" and "Shariah non-compliant risk" in the context of Islamic Financial Institutions and also examined process adopted by the Malaysian IFIs in managing the shariah risk. The hypotheses that the paper seeks to establish are that there are differences between the concept of Shariah risk and shariah non-compliant risk; and that the shariah risk management process adopted by the IFIs are different than the conventional risk management process due to the unique features and requirements of the IFIs. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/49149/1/49149.pdf Hassan, Rusni and Othman, Ahmad Azam and Omar, Muhammad Naim and Mohd Napiah, Mohammad Deen and Abdiullah, Muhamad Asmadi and Arifin, Mahamad and Yusoff, Adnan and Mohd Karim, Muhammad Syahmi (2015) Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010. In: The 8th UUM International Legal Conference 2015, 25th -26th Aug. 2015, Golden Flower Hotel, Bandung, Indonesia. http://lawconference.uum.edu.my/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance KPG Malaysia
spellingShingle	HG Finance KPG Malaysia Hassan, Rusni Othman, Ahmad Azam Omar, Muhammad Naim Mohd Napiah, Mohammad Deen Abdiullah, Muhamad Asmadi Arifin, Mahamad Yusoff, Adnan Mohd Karim, Muhammad Syahmi Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
description	Shariah compliance is the backbone of Islamic banks. As an institution established within the ambit of Shariah, Islamic banks are expected to ensure that their aims, activities, operations and managements adhere to the Shariah principles and values. Failure to comply with Shariah, will expose Islamic Financial Institutions (IFIs) to Shariah non-compliance risk. Subsequently, it is an essential duty of the IFIs to manage Shariah risk properly. In order to effectively manage the risk vulnerability of the IFIs, proper measures for risk management have been put in place on different frameworks that are either domestic or international based. In the Malaysian context, IFIs are guided by relevant regulations such as the Shariah Governance Framework 2010, IFSB principles and Islamic Financial Services Act 2013 as regards to Shariah Risk management. This present research examines the regulatory requirements on the Shariah risk management process for Islamic financial institutions that operate in Malaysia, in the context of the Guidelines on Shariah Governance Framework 2010 issued by the Central Bank of Malaysia. The paper will discuss the concept of "risk", "Shariah risk" and "Shariah non-compliant risk" in the context of Islamic Financial Institutions and also examined process adopted by the Malaysian IFIs in managing the shariah risk. The hypotheses that the paper seeks to establish are that there are differences between the concept of Shariah risk and shariah non-compliant risk; and that the shariah risk management process adopted by the IFIs are different than the conventional risk management process due to the unique features and requirements of the IFIs.
format	Conference or Workshop Item
author	Hassan, Rusni Othman, Ahmad Azam Omar, Muhammad Naim Mohd Napiah, Mohammad Deen Abdiullah, Muhamad Asmadi Arifin, Mahamad Yusoff, Adnan Mohd Karim, Muhammad Syahmi
author_facet	Hassan, Rusni Othman, Ahmad Azam Omar, Muhammad Naim Mohd Napiah, Mohammad Deen Abdiullah, Muhamad Asmadi Arifin, Mahamad Yusoff, Adnan Mohd Karim, Muhammad Syahmi
author_sort	Hassan, Rusni
title	Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
title_short	Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
title_full	Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
title_fullStr	Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
title_full_unstemmed	Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010
title_sort	shariah risk management process for islamic financial institutions in the context of shariah governance framework 2010
publishDate	2015
url	http://irep.iium.edu.my/49149/ http://irep.iium.edu.my/49149/ http://irep.iium.edu.my/49149/1/49149.pdf
first_indexed	2023-09-18T21:09:32Z
last_indexed	2023-09-18T21:09:32Z
_version_	1777411159124606976

Shariah risk management process for Islamic financial institutions in the context of Shariah Governance Framework 2010

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