Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East (Wiley Finance)

Gain insight into the unique risk management challenges within the Islamic banking system Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks. The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like: Risk management as an integrated system The history, framework, and process of risk management in Islamic banking Financing, operational, investment, and market risk Shariah compliance and associated risk The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.

Gain insight into the unique risk management challenges within the Islamic banking system

Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks.

The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like:

• Risk management as an integrated system
• The history, framework, and process of risk management in Islamic banking
• Financing, operational, investment, and market risk
• Shariah compliance and associated risk

The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.

Content: Part One: Introduction. Principles of the Islamic Financial System -- The Islamic Bank and Risk Management -- Part Two: Risk Management Framework in Islamic Banking. History of Risk Management in Islamic Banking -- The Risk Management Process in Islamic Banking -- Financial Reporting and Analysis in Islamic Banking -- Part Three: Risk Management in Islamic Banking. Financing Risk in Islamic Banking -- Operational Risk in Islamic Banking -- Syari'ah Compliance Risk -- Strategic Risk -- Investment Risk in Islamic Banking -- Market Risk in Islamic Banking -- Liquidity Risk in Islamic Banking -- Part Four: Future Prospects and Challenges in Islamic Banking. Development of the Islamic Financial Market -- Development of a Pricing Model in Islamic Banking -- Pathways of Risk Management in Islamic Banks -- Future Agenda -- Part Five: Conclusion. Summary and Conclusion. Principles Of The Islamic Financial System -- The Islamic Bank And Risk Management -- History Of Risk Management In Islamic Banking -- The Risk Management Process In Islamic Banking -- Financial Reporting And Analysis In Islamic Banking -- Financing Risk In Islamic Banking -- Operational Risk In Islamic Banking -- Syari'ah Compliance Risk -- Strategic Risk -- Investment Risk In Islamic Banking -- Liquidity Risk In Islamic Banking -- Development Of The Islamic Finanical Market -- Development Of A Pricing Model In Islamic Banking -- Pathways Of Risk Management In Islamic Banks -- Future Agenda. Imam Wahyudi, Fenny Rosmanita, Muhammad Budi Prasetyo, Niken Iwani Surya Putri. Includes Bibliographical References (pages 359-381) And Index.