An integrated risk-management framework for Islamic banks

This guide shows students and professions how to identify, measure and mitigate risk in Sharia''h-compliant banks. Using simulated Islamic bank financial statements, it demonstrates the integrated risk management process, and investigates how risk regulatory insights have implications for banking policy.

The global financial crisis of 2008 has increased the need for risk management in Islamic banks. However, the process is complicated: Islamic banks worldwide provide diverse financial facilities and services under one roof yet lack a uniform risk map and a structured risk management framework.

Key Features

• Covers the critical aspects of the subject: credit or default risk, liquidity risk, market risk, operational risk, Sharia''h risk and displaced commercial risk
• Presents risk analysis and mitigation on the contract level and the overall bank level
• Simulated financial statements include the balance sheet, income statement and profit distribution model
• Provides a risk coding system that facilitates risk management and reporting systems
• Compares risk management in conventional and Islamic banks
• Features a glossary of key Arabic terms and abbreviations