Question
Asked 22nd Aug, 2012

How are Islamic banks going to cater the problem of Risk management?

Measurement and provisioning for Credit Risk, Operational Risk and market risk.

Most recent answer

Md.Akther Uddin
University of Science and Technology Chittagong
Risk Management Practices in Islamic Bank: A Case Study of Islami Bank Bangladesh Limited

All Answers (6)

Munir Ahmad Mughal
University of the Punjab,Lahore High Court,
By observing honesty and just behaviour. There should be declaration of true profits and accounts open to all at all times. System should be equity oriented.
Measurement for Credit Risk can be above mellui method of financing the restructuring or rescheduling. while market risk can be addressed using the principle of sharing profits or losses. And Operational risk can be overcome by managing market risks related to changes in exchange rates which may cause harm Bank
This has been dealt with in a comprehensive manner in relevant guidelines of the Islamic Financial Services Board (IFSB).
For the full text of the GUIDING PRINCIPLES OF RISK MANAGEMENT FOR INSTITUTIONS (OTHER THAN INSURANCE INSTITUTIONS) OFFERING ONLY ISLAMIC FINANCIAL SERVICES, kindly visit:
Abdul Azeez Maruf Olayemi
Jumeira University
It depends on the type of risk that is in question. That is, whether it is Shariah risk, legal risk, liquidity risk and etc.  Each type of risk is dealt with in the guidelines and regulations of Central Banks and other regulatory bodies such as IILM, IFSB, Basel and etc. Thus, the onus rests on the regulators to apply the law to the letter to ensure that risks are avoided.  Since regulators play important role in the regard. The only way to mitigate risk is to bring experts on board.
Salman Ahmed Shaikh
Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
You can read a short article describing risk management is Islamic banking at: https://islamiceconomicsproject.wordpress.com/2014/09/10/risk-management-tools-in-islamic-banking/
Md.Akther Uddin
University of Science and Technology Chittagong
Risk Management Practices in Islamic Bank: A Case Study of Islami Bank Bangladesh Limited

Similar questions and discussions

Global Halal Tourism Tourist Profile Barometer (GHTTPB)
Discussion
15 replies
  • Ömer Akgün TekinÖmer Akgün Tekin
Dear Colleagues,
I have a project to prepare a Global Halal Tourism Tourist Profile Barometer for a while now. The global halal tourism industry needs detailed information about the halal tourism demand. I think we must control the characteristics of halal tourism demand every year. A few years later we can prepare trends and make predictions about the evolution of halal tourism demand. Because of this reason, this project must be a barometer that produce information about the demand side of halal tourism market annualy.
In fact, two of my colleagues and I prepared a pilot study in Antalya / TURKEY destination. You can reach this report from my RG page.
To prepare a GHTTPB I have to overcome these two problems;
1. A data collection network (Volunteer co-researchers)
2. Financial funding (Sponsorships or project funding systems)
For data collection network: I need volunteer co-researchers from different countries which are popular for the Muslim travellers (especially from Malaysia, Saudi Arabia, UAE, Bahrain, Morocco, Russia, Spain, France, Thailand, Singapore, Italy, Greece). My colleagues and I have developed and tested a tourist profile questionnaire. We can use this instrument for this study too or we can improve it all together. The volunteer co-researchers should conduct this study in their country. We must collect 500 questionnaires from every countries. All co-researcher will be presented as co-writers of the GHTTPB.
For financial funding: We need a fund to conduct this research. I think maybe we can find sponsorhips from some companies that are care halal tourism. And maybe we can find a project funding system. I am not sure and I have not found a way out so far.
Is there anybody who wants to be a part of this project? Please contact with me.
Can you offer me a solution to find a financial funding?
Best regards.

Related Publications

Presentation
This channel is dedicated to discuss topics and concepts in Islamic economics. Don't forget to subscribe, like and hit the notification button!
Got a technical question?
Get high-quality answers from experts.