Risk Management in Islamic Financial Institutions

2011 ◽  
Author(s):  
Mohamed Abdulla Ebrahim
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Islamic Financial Institutions

scholarly journals A SUCCINCT ANALYSIS OF MITIGATING LIQUIDITY RISK IN ISLAMIC BANKS IN THE LIGHT OF LIQUIDITY AND RISK MANAGEMENT PRINCIPLES

2019 ◽  
Vol 4 (1) ◽  
pp. 527
Author(s):  
Atharyanshah Puneri ◽  
Naeem Suleman Dhiraj ◽  
Hafiz Benraheem
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Institution ◽  
Real Life ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Islamic Financial Institutions ◽  
The Subject ◽  
Key Aspects

Liquidity management has been incessantly challenging for the financialinstitutions and especially Islamic financial institutions due to their nature of business. The�convoluted nature of liquidity management impedes the task of Islamic banks in managing�their liquidity efficiently. Given the intricacies of the subject matter, this paper delves into�elaborating the key aspects of liquidity management; subsequently, discusses the�consequences of poor liquidity management and problems inherent in managing the latter by�analyzing the real-life failure of Islamic financial institution as a result identifying the issues that could possibly jeopardize the existence of the Islamic banks. Finally, equipping the�readers with tools to mitigate the liquidity risk.

scholarly journals Risk Management Disclosure In Malaysian Islamic Financial Institutions: Pre- And Post-Financial Crisis

2013 ◽  
Vol 29 (2) ◽  
pp. 419 ◽  
Author(s):  
Rosnadzirah Ismail ◽  
Rashidah Abdul Rahman ◽  
Normah Ahmad
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Islamic Law ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Risk Disclosure ◽  
Font Size ◽  
Islamic Financial Institutions ◽  
The Global Financial Crisis

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; mso-hyphenate: none;" class="MsoNormal"><span style="font-family: Times New Roman;"><span lang="EN-GB" style="color: black; font-size: 10pt; mso-ansi-language: EN-GB; mso-fareast-language: AR-SA; mso-themecolor: text1;">The East Asian financial crisis in 1997 and later the global financial crisis in 2007 and 2008 had a big impact on the corporate world as many companies and financial institutions collapsed during that period.<span style="mso-spacerun: yes;"> </span>Poor governance systems and lack of transparency in reporting including lack of risk reporting and disclosure were blamed as the roots of the problem.<span style="mso-spacerun: yes;"> </span></span><span style="color: black; font-size: 10pt; mso-fareast-language: AR-SA; mso-themecolor: text1;">Conventional financial institutions have widely practiced risk management within their organization, but it is still under-developed in Islamic financial institutions due to new emerging market and unique business structures which are based on Shariah or Islamic law.<span style="mso-spacerun: yes;"> </span>Therefore, t</span><span lang="EN-GB" style="color: black; font-size: 10pt; mso-ansi-language: EN-GB; mso-fareast-language: AR-SA; mso-themecolor: text1;">his study examined the risk management disclosure by all 17 Islamic financial institutions in Malaysia from 2006 to 2009, covering the period before, during, and after the global financial crisis.<span style="mso-spacerun: yes;"> </span>A disclosure checklist consists of mandatory and voluntary items developed to measure the level of risk disclosure.<span style="mso-spacerun: yes;"> </span>The descriptive result shows the risk management disclosure among the Islamic Financial Institutions was satisfactory.<span style="mso-spacerun: yes;"> </span>Analysis for a four year period revealed that the risk disclosure has greatly improved before and after crisis indicating that Islamic Financial Institutions have taken the necessary steps to improve their disclosure.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

scholarly journals Studi Analisis Manajemen Risiko Pembiayaan Mudharabah di BMT Sidogiri Cabang Bondowoso

2018 ◽  
Vol 7 (2) ◽  
pp. 95-128
Author(s):  
Ubaidillah Mansur
Keyword(s):  
Economic Theory ◽  
Risk Management ◽  
Financial Institutions ◽  
Management Strategy ◽  
Descriptive Analysis ◽  
Risk Management Strategy ◽  
Observation Methods ◽  
Interview Methods ◽  
Islamic Financial Institutions ◽  
Qualitative Descriptive

Abstract: In familiar Islamic financial institutions we hear the term mudharabah, mudharabah is a contract that involves between two or more people, namely the owner of investor capital (Shahibul Maal) who entrusts his capital to people (mudharib) to be managed. The division of mudaraba is divided into two, namely: the first: Mudharabah muqayyadah which means shahibul maal gives a limit to the funds invested. And secondly: Mudharabah Muthlaqah Shahibul Maal does not provide limits on the funds invested. The focus of this study is first how the implementation of mudharabah financing at BMT Sidogiri Branch Bondowoso. Second, what is the risk management strategy of mudharabah financing at BMT Sidogiri Branch Bondowoso. The research objectives are 1). To obtain information about the implementation of mudharabah financing at BMT Sidogiri Branch Bondowoso. 2). Want to describe the risk management strategy for mudharabah financing at BMT Sidogiri Branch Bondowoso. In this study the authors used qualitative research with interview methods, observation methods and documentation methods. so in the form of analysis we use qualitative descriptive analysis. The results showed that mudharabah financing at BMT Sidogiri Branch Bondowoso was in accordance with the Shari'a contained in sharia economic theory because in it the terms and conditions were met, but in mudharabah financing at BMT Sidogiri, Bondowoso Branch could only be realized in the form of fund collection .  

scholarly journals THE NATURE OF RISK IN ISLAMIC FINANCIAL INSTITUTIONS

2017 ◽  
Vol 2 (1) ◽  
Author(s):  
Putri Reno Kemala Sari
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Distress ◽  
Primary Sources ◽  
Financial Industry ◽  
Financial Organization ◽  
Islamic Financial Institutions ◽  
New Interpretation ◽  
Recommendation Strategy ◽  
New Evidence

Islamic financial institutions are a risky business and several risk factors have been identified as critical to ensure that the Islamic financial institutions position remain intact amid the intense competition in the industry. The survival and success of a financial organization depends critically on the efficiency of managing risks. More importantly, good risk management is highly relevant in providing better return to the stakeholders. In addition, prudent risk management by financial institutions is the hallmark to avoid financial distress that could lead to financial crisis. This research aims to identify the types of risk in Islamic Financial Institutions. This research is using qualitative method to collect and analyze the data through direct observation and documentation study. The findings in this study offers a new interpretation of the primary sources that significantly introduce substantial new evidence and findings that would be beneficial for players in the Islamic industry, including policymakers and regulators to develop, enhance and improve the Risk Management. Furthermore, the study hopes to contribute in terms of recommendation strategy to strengthen and knowing the risk of the Islamic Financial Institutions so as to increase the overall competitiveness in the Islamic Financial Industry.

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