Risk Management in Islamic Financial Institutions

  • Abul HassanEmail author
  • Sabur Mollah


Islamic banking and finance not only face the same risks as conventional banks, they are also confronted with new and unique risks as a result of their unique asset and liability structures. This chapter discusses the types of risks involved in Islamic Financial Institutions (IFIs) and how to deal with these risks within the Shari’ah framework.


Profit sharing Risk Market Credit Systematic Liquidity 


  1. Hassan, H. H. (2009). Basic Shariah Principles Governing Risk Management. Paper presented at the Harvard LSE Workshop on Risk Management, London School of Economics, February 26, 2009.Google Scholar
  2. IFSB. (2005). Guiding Principles of Risk Management for Institutions (Other than Insurance Institutions) Offering Only Islamic Financial Services. Kuala Lumpur: IFSB.Google Scholar
  3. Iqbal, M., Ahmad, A., & Khan, T. (1998). Challenges Facing Islamic Banking (Occasional Paper No. 1). Jeddah: Islamic Research and Training Institute.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.King Fahd University of Petroleum and MineralsDhahranSaudi Arabia
  2. 2.Accounting and FinanceSwansea UniversitySwanseaUK

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