Risk Management for Islamic Banks
This guide teaches students and professionals to identify, measure, and mitigate risk in Sharia'h-compliant banks. Covering critical areas, such as credit or default risk, liquidity risk, market risk, operational risk, Shari'ah risk, and displaced commercial risk, the volume describes risk analysis and mitigation with respect to both contract and overall bank regulations. Using financial statements from a simulated Islamic bank, including balance sheets, income statements, and profit distribution models, Rania Abdelfattah Salem explains this integrated risk-management process in practice and investigates the application of risk regulatory insights in banking policy. She outlines a risk coding system to facilitate risk management and reporting systems, and she compares different risk management scenarios across a number of conventional and Islamic banks.