Sharia Risk Management Framework for Islamic Financial Institutions: Its Global Application in Managing Sharia Non- Compliant Risk
(Rangka Kerja Pengurusan Risiko Syariah Institusi Kewangan Islam: Aplikasi Global Menangani Risiko Ketidakpatuhan Syariah)
Abstract
In addition to the risks faced by traditional financial institutions, Islamic banks are widely exposed to sharia-related risks with regards to the need for ensuring compliance of its operational activities and financial products with Islamic law. In order to mitigate these additional risks, Islamic financial institutions are urged to establish a comprehensive 'Framework for Sharia Risk Management' that can help them monitor their banking, financing and investment activities in conformity with sharia principles and hence enhance their sustainability in the long run.
Keywords: Sharia Risk Management Practices, sharia compliant, Islamic finance, traditional financial institutions, banking system
References
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Young, J. (2006). Operational risk management: The practical application of a qualitative approach. Pretoria: Van Schaik Publishers.
Chankova, Lubka (2002). Risk identification- basic stage in risk management. Environmental Management and Health Journal, 13(3), 290 - 297.
De Lorenzo, Y. T. (2007). Syariah non-compliance risk. Chicago Journal of International Law, 7(2), 402.
Hertz, D. B., dan Thomas, H. (1983). Risk analysis and its applications. Chichester: Wiley.
Holland, J. (2010). Banks, knowledge and crisis: A case of knowledge and learning failure. Journal of Financial Regulation and Compliance, 18(2), 87 - 105.
Ismail, Abdul Ghafar (2010). Money, Islamic banks and the real economy.Singapore: Cengage Learning Asia Pte.Ltd.
Izhar, Hylmun (2010). Identifying operational risk exposures in Islamic banking. Kyoto Bulletin of Islamic Area Studies, 3(2), 17-53.
Izhar, Hylmun, Salah, dan Zakaria Ali Hassan (2013). Applying core principles of risk management in Islamic banks' operational risk analysis. Afro Eurasian Studies, 2(1/2), 15 - 40.
Kalyvas, L., dan Akkizidis, I. (2006). Integrating market, credit and operational risk: A complete guide for bankers and risk professionals. London: Risk Books Incisive Financial Publishing Ltd.
Oxford Dictionary of Business and Management (p. 486). New York: Oxford University Press.
Rosman, Romzie (2009). Risk management practices and risk management processes of Islamic banks: A proposed framework. International Review of Business Research Papers, 5(1), 250.
Sabato, G. (2009). Financial crisis: Where did risk management fail?. Capaian daripada SSRN: http://ssrn.com/abstract¼1460762.
Sensarma, R., dan Jayadev, M. (2009). Are bank stocks sensitive to risk management?. The Journal of Risk Finance, 10(1), 7 - 22.
Wajdi, A. (2014). Principles and application of risk management and hedging instruments in Islamic finance. Capaian daripada www.asyrafwajdi.com/v25/index.php/article.
Young, J. (2006). Operational risk management: The practical application of a qualitative approach. Pretoria: Van Schaik Publishers.
Published
2017-07-01
How to Cite
HASSAN, Rusni et al.
Sharia Risk Management Framework for Islamic Financial Institutions: Its Global Application in Managing Sharia Non- Compliant Risk.
Kanun: Jurnal Undang-undang Malaysia, [S.l.], v. 29, n. 2, p. 351-379, july 2017.
ISSN 2682-8057.
Available at: <https://jurnal.dbp.my/index.php/Kanun/article/view/1078>. Date accessed: 18 apr. 2024.
Section
Articles
