Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib

Islamic finance has unique characteristics that give rise to a set of risk management challenges namely credit risk; liquidity risk; legal and fiduciary risk; financial supervision and transparency; and shari'ah supervision risk (Morisano, 2009). Due to the rapid growth in Islamic finance, a ma...

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Main Authors:	Tapsir, Roszana, Abdul Aris, Nooraslinda, Abu Talib, Mohamad Kamil
Format:	Research Reports
Language:	English
Published:	Research Management Institute (RMI) 2012
Subjects:	Management. Industrial Management Insurance
Online Access:	http://ir.uitm.edu.my/id/eprint/21225/ http://ir.uitm.edu.my/id/eprint/21225/1/LP_ROSZANA%20TAPSIR%20RMI%2012_5.pdf

id	uitm-21225
recordtype	eprints
spelling	uitm-212252018-08-15T08:22:31Z http://ir.uitm.edu.my/id/eprint/21225/ Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib Tapsir, Roszana Abdul Aris, Nooraslinda Abu Talib, Mohamad Kamil Management. Industrial Management Insurance Islamic finance has unique characteristics that give rise to a set of risk management challenges namely credit risk; liquidity risk; legal and fiduciary risk; financial supervision and transparency; and shari'ah supervision risk (Morisano, 2009). Due to the rapid growth in Islamic finance, a major issue arises in terms of shortages of qualified and knowledgeable risk management professionals. Therefore, there is a need for a unique risk framework for Islamic institutions covering risk categorisation and documents roles, responsibilities and authorities that support the approach and processes. The structures and processes established within an Islamic Financial Institution (IFI) for monitoring and evaluating shari'ah compliance rely essentially on the arrangements internal to the firm. By being incorporated in the institutional structure, a Shari'ah Supervisory Board (SSB) has the advantage of being close to the market. Competent, independent, and empowered to approve new Shari’ah-conforming products and/or services, the SSB can enable innovation likely to emerge within the institution. Grais and Pellegrini (2006) reviewed the issues and options facing current arrangements for ensuring shari'ah compliance and suggested a framework that draws on internal and external arrangements to the firm and emphasizes market discipline. This could ensure adequate consistency of interpretation and enhance the enforceability of contracts and lead to more effective options available to stakeholders for further improve Islamic finance. Research Management Institute (RMI) 2012 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/21225/1/LP_ROSZANA%20TAPSIR%20RMI%2012_5.pdf Tapsir, Roszana and Abdul Aris, Nooraslinda and Abu Talib, Mohamad Kamil (2012) Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib. [Research Reports] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Management. Industrial Management Insurance
spellingShingle	Management. Industrial Management Insurance Tapsir, Roszana Abdul Aris, Nooraslinda Abu Talib, Mohamad Kamil Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
description	Islamic finance has unique characteristics that give rise to a set of risk management challenges namely credit risk; liquidity risk; legal and fiduciary risk; financial supervision and transparency; and shari'ah supervision risk (Morisano, 2009). Due to the rapid growth in Islamic finance, a major issue arises in terms of shortages of qualified and knowledgeable risk management professionals. Therefore, there is a need for a unique risk framework for Islamic institutions covering risk categorisation and documents roles, responsibilities and authorities that support the approach and processes. The structures and processes established within an Islamic Financial Institution (IFI) for monitoring and evaluating shari'ah compliance rely essentially on the arrangements internal to the firm. By being incorporated in the institutional structure, a Shari'ah Supervisory Board (SSB) has the advantage of being close to the market. Competent, independent, and empowered to approve new Shari’ah-conforming products and/or services, the SSB can enable innovation likely to emerge within the institution. Grais and Pellegrini (2006) reviewed the issues and options facing current arrangements for ensuring shari'ah compliance and suggested a framework that draws on internal and external arrangements to the firm and emphasizes market discipline. This could ensure adequate consistency of interpretation and enhance the enforceability of contracts and lead to more effective options available to stakeholders for further improve Islamic finance.
format	Research Reports
author	Tapsir, Roszana Abdul Aris, Nooraslinda Abu Talib, Mohamad Kamil
author_facet	Tapsir, Roszana Abdul Aris, Nooraslinda Abu Talib, Mohamad Kamil
author_sort	Tapsir, Roszana
title	Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
title_short	Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
title_full	Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
title_fullStr	Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
title_full_unstemmed	Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib
title_sort	risk management, shari'ah compliance and performance of takaful operators in malaysia / roszana tapsir, nooraslinda abdul aris and mohamad kamil abu talib
publisher	Research Management Institute (RMI)
publishDate	2012
url	http://ir.uitm.edu.my/id/eprint/21225/ http://ir.uitm.edu.my/id/eprint/21225/1/LP_ROSZANA%20TAPSIR%20RMI%2012_5.pdf
first_indexed	2023-09-18T23:06:07Z
last_indexed	2023-09-18T23:06:07Z
_version_	1777418494666604544

Risk management, Shari'ah compliance and performance of takaful operators in Malaysia / Roszana Tapsir, Nooraslinda Abdul Aris and Mohamad Kamil Abu Talib

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