Mapping the Risks and Risk Management Practices in Islamic Banking

An insightful analysis of controversial risk management issues in Islamic banking

Islamic finance is the fastest growing sector in the financial industry. Solidly based in research, Mapping the Risks and Risk Management Practices in Islamic Banking offers a comprehensive and much-needed guide that explores the perceptions and attitudes of Islamic banking professionals towards contemporary risk management issues within Islamic banking. In addition to the expert opinions and information, this practical book contains recommendations for policymakers, bankers, and industry stakeholders.

Written by two experts on the topic (a well-known working professional and an acclaimed academic), the book effectively combines theory with practice and is filled with useful data and insight from industry financiers and bankers that help analyse the sector's current risk management practices. The authors review the recent trends and attitudes and explore the current issues that pertain to risk management in Islamic banks. The book also highlights the unique risks facing Islamic banks, from the perspective of a wide range of practitioners.

In recent years, the focus on Islamic banking has shifted away from interest-free banking to developing an Islamic financial industry that does not suffer from the weaknesses of the conventional banking system. This new focus highlights risk management and mitigation, financial engineering, innovation, and providing common standards in Islamic finance. The book digs deep into current ideas and practices to discover what's being done, what needs to be done, and what needs to stop happening to keep the future of Islamic finance strong.

The authors examine Islamic banking in light of the recent financial crisis, review the current Islamic risk management practices, and consider the range of risks that are unique to the Islamic banking sector. Mapping the Risks and Risk Management Practices in Islamic Banking provides a thoughtful, authoritative analysis of where the industry is today and where it needs to develop to meet the needs of the future.