Risk Management in Islamic Banking and Islamic Capital Market
Course Description
This course is designed to equip you with the knowledge and skills to identify, assess, and mitigate risks specific to Islamic banking institutions. It will combine Islamic financial principles (Sharia), Islamic capital market and help participants to mitigate risks through risk management best practices.
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Recognitions
WingsWay Training Institute, a globally recognized and trusted Authorised Training Centre, ensures you receive top-quality education and recognition for your efforts. Our commitment to delivering exceptional private education in Dubai has earned us the endorsement of the Knowledge and Human Development Authority (KHDA) and ISO 9001:2015 certification from the International Accreditation Forum (IAF).
Furthermore, WingsWay Training Institute proudly achieved the title of ‘Best Training Institute’ twice in 2023 and anticipates maintaining this prestigious position in 2024. Our services and training quality have not only been recognized by students in over 60 countries but also by TOP international organisations.
Learning Mode
- Classroom
- Virtual Instructor Led Training – VILT
Course Duration
- 3 Days
Course Language
- English
- Arabic
Who Should Attend?
This course is designed for professionals working in Islamic banking and finance, including risk managers, Sharia scholars, compliance officers, and anyone seeking a deeper understanding of risk management in an Islamic financial context.
Learning Objective
- Equip participants with a comprehensive understanding of Islamic perspectives on risk and its management.
- Identify the specific types of risks inherent to Islamic financial products and services- credit risk, operational risk, market risk.
- Equip participants with a thorough understanding of Islamic risk management principles and practices.
- Analyze the unique risks associated with Islamic banking products and services.
- Develop skills to identify, measure, monitor, and mitigate risks while adhering to Sharia compliance.
- Gain insights into the regulatory framework for risk management in Islamic banking.
- Grasp the core concepts and principles of Islamic capital markets.
- Identify the different instruments used in Islamic finance.
- Apply Islamic financial knowledge to make informed investment decisions.
Course Outline
- Risk Management in Islamic Banking
Module 1: Introduction to Islamic Banking and Finance
- Core principles of Islamic finance (e.g., profit-sharing, risk-sharing)
- Differences between Islamic and conventional banking
Module 2: Islamic Risk Management Framework
- Basic understanding of risks- Concept of risk in Islamic perspective
- Definition and Introduction to Risk Management
- Different Types of Risk Factors
- Financial
- Business
- Operational
- Sharia principles governing risk management
- The role of Sharia Supervisory Boards
- Comparison of conventional and Islamic risk management frameworks
Module 3: Types of Risks in Islamic Banking
- Credit Risk
- Market Risk
- Operational Risk
- Liquidity Risk
- Investment Return Risk
Module 4: Risk Management Techniques for Islamic Banks
- Credit Risk management & process
- (Difference between credit risk management and credit management)
- Credit Risk and mitigation tools
- Operational Risk and mitigation tools
- Operational loss/remedial action/provisioning
- Unique risks for IB
Module 5: Sharia compliance and risk management
- Customer due diligence and risk-based financing
- Sharia-compliant collateral management
- Capital adequacy and risk-based capital requirements under IFSB guidelines
- Stress testing and scenario analysis for Islamic banks
- Risk mitigation strategies for different types of risk
- Sharia compliance audits and risk management
2. Islamic Capital Market Ecosystem
- An Overview of the Islamic Investment guidelines
- Investment techniques in Islamic finance.
Module 05: Sharia-compliant Instruments:
- Mudarabah (profit-sharing contract); Musharakah (Joint venture)
- Investment Deposits
- Equity Investing-Equity Screening
- Islamic Investment Funds
- Role of Sukuk
- Islamic Certificate of Deposits
- Risk in Islamic Investment Products- Credit Risk, Operational Risks, market Risks.
Module 06: Case Studies and Practical Applications
- Analyze real-world case studies of risk management in Islamic banking
- Apply risk management techniques to practical scenarios
- Group discussions and practical exercises
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