Chapter 17
Managing Risk in Islamic Financial Institutions
In This Chapter
Appreciating the importance of risk management
Walking through the risk management process
Determining why Islamic firms face certain risks that conventional firms don’t
Identifying the risks at play in conventional and Islamic finance
Reading up on risk management standards in the Islamic finance industry
All business organizations face risks, which can range from the loss of a loyal customer to the failure of the entire operation. Data corruption or theft, lawsuits against the company, fines, penalties, loss of competitive advantage, negative media attention, public liability . . . the types of risk that a company may face are seemingly endless.
Financial institutions, including those in the Islamic sector, face certain risks that are specific to their industry. Islamic financial firms encounter an additional set of risks that relate to their adherence to Islamic law (see Chapters 1 and 2).
As the Islamic ...
Get Islamic Finance For Dummies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
