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)

  • Rusni Hassan Deputy Dean IIUM Institute of Islamic Banking and Finance IIUM
  • Adnan Yusoff Universiti Tenaga Nasional.
  • Mohd. Syahmi Ab. Karim Bank Pembangunan Islam Dunia
  • Ahmad Azam Othman Universiti Islam Antarabangsa Malaysia
  • Muhammad Naim Omar Universiti Islam Antarabangsa Malaysia
  • Mohammad Deen Mohd. Napiah Universiti Islam Antarabangsa Malaysia
  • Mohamad Asmadi Abdullah Universiti Islam Antarabangsa Malaysia
  • Ahmad Najib Abdullah Universiti Islam Antarabangsa Malaysia

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

Author Biographies

Ahmad Azam Othman, Universiti Islam Antarabangsa Malaysia

Kulliyyah Undang-undang Ahmad Ibrahim

Muhammad Naim Omar, Universiti Islam Antarabangsa Malaysia

Kulliyyah Undang-undang Ahmad Ibrahim

Mohammad Deen Mohd. Napiah, Universiti Islam Antarabangsa Malaysia

Kulliyyah Undang-undang Ahmad Ibrahim

Mohamad Asmadi Abdullah, Universiti Islam Antarabangsa Malaysia

Kulliyyah Undang-undang Ahmad Ibrahim

Ahmad Najib Abdullah, Universiti Islam Antarabangsa Malaysia

Kulliyyah Undang-undang Ahmad Ibrahim

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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: 10 dec. 2024.