1 participant: RM4,500/$1,100
2 participants: RM9,000/$2,200
3 participants: RM13,500/$3,300
4 participants: RM18,000/$4,400
5 participants: RM22,500/$5,500
Discounts are available for group bookings. Please contact us for more details.
Shariah Compliance and Shariah Stress Testing for Islamic Financial Institutions
Employing the Latest Tools to Enhance the Resilience of Islamic Financial Institutions
Date: 26th & 27th July 2023
Venue: Le Meridien Kuala Lumpur
Classroom Training
COURSE BACKGROUND
Shariah risk and in particular, Shariah non-compliance risk, is a vital component of operational risk for Islamic financial institutions. In recent years, central banks have tightened the requirements for Islamic financial institutions to evaluate, analyse and manage Shariah compliance risk systematically. In its Stress Testing Policy Document, Bank Negara Malaysia stipulates that Islamic financial institutions must now ensure stress testing programs appropriately consider the key scenarios and assumptions that are often unique to Islamic financial institutions. Shariah stress testing is an important tool, helping financial institutions identify risks which can be used for scenario analysis and planning across an institution. Stress testing also has the important role of identifying potential vulnerabilities and assessing the possible impact of adverse events on a financial institution’s performance. Although Shariah stress testing has its origin in risk management, the exercise provides multiple functions across a financial institution with an understanding of key risks and potentially adverse events, and how these could impact the institution’s operations, financial standing and ability to meet its obligations.
- Key Takeaways and Learning Objectives
- To provide a clear definition of the various forms of Shariah non-compliance risk within an Islamic financial institution, and how these can be managed and mitigated
- To understand the regulatory environment and the role of the financial regulator in relation to Shariah non-compliance risk and Shariah stress testing
- To understand the role of Shariah stress testing in helping identify potential vulnerabilities and the impact of adverse events on a financial institution’s performance, financial position and ability to meet its obligations
- To provide a clear understanding of the objectives and mechanisms of Shariah stress testing for Islamic financial institutions
- To establish comprehensive tools and methodologies for Shariah stress testing: the Shariah matrix, the template, validity of the assessment, process of validation and more
- To provide a robust, hands-on guide and end-to-end stress testing mechanism for specific Islamic products and business activities
- To emphasise the importance of effective reporting: tools, techniques and processes
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Send me Details
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
Shariah Compliance and Shariah Stress Testing for Islamic Financial Institutions
Employing the Latest Tools to Enhance the Resilience of Islamic Financial Institutions
Date: 26th & 27th July 2023
Venue: Le Meridien Kuala Lumpur
Classroom Training
Send me Details
COURSE BACKGROUND
Shariah risk and in particular, Shariah non-compliance risk, is a vital component of operational risk for Islamic financial institutions. In recent years, central banks have tightened the requirements for Islamic financial institutions to evaluate, analyse and manage Shariah compliance risk systematically. In its Stress Testing Policy Document, Bank Negara Malaysia stipulates that Islamic financial institutions must now ensure stress testing programs appropriately consider the key scenarios and assumptions that are often unique to Islamic financial institutions. Shariah stress testing is an important tool, helping financial institutions identify risks which can be used for scenario analysis and planning across an institution. Stress testing also has the important role of identifying potential vulnerabilities and assessing the possible impact of adverse events on a financial institution’s performance. Although Shariah stress testing has its origin in risk management, the exercise provides multiple functions across a financial institution with an understanding of key risks and potentially adverse events, and how these could impact the institution’s operations, financial standing and ability to meet its obligations.
- Key Takeaways and Learning Objectives
- To provide a clear definition of the various forms of Shariah non-compliance risk within an Islamic financial institution, and how these can be managed and mitigated
- To understand the regulatory environment and the role of the financial regulator in relation to Shariah non-compliance risk and Shariah stress testing
- To understand the role of Shariah stress testing in helping identify potential vulnerabilities and the impact of adverse events on a financial institution’s performance, financial position and ability to meet its obligations
- To provide a clear understanding of the objectives and mechanisms of Shariah stress testing for Islamic financial institutions
- To establish comprehensive tools and methodologies for Shariah stress testing: the Shariah matrix, the template, validity of the assessment, process of validation and more
- To provide a robust, hands-on guide and end-to-end stress testing mechanism for specific Islamic products and business activities
- To emphasise the importance of effective reporting: tools, techniques and processes
- Shariah risk professionals
- Shariah compliance, audit and review professionals
- Shariah advisory committee and research officers
- Compliance and in-house counsel
- Risk and internal audit managers
- Product development professionals
- Operations managers
- Consultants and advisors
- Islamic bankers and managers
- Regulators and supervisors
1 participant: RM4,500/$1,100
2 participants: RM9,000/$2,200
3 participants: RM13,500/$3,300
4 participants: RM18,000/$4,400
5 participants: RM22,500/$5,500
Discounts are available for group bookings. Please contact us for more details.
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
AGENDA
(Coffee breaks: 10.30am – 11.00am & 3.30pm – 4.00pm)
Session 1: Latest Issues in Shariah Governance for Islamic Financial institutions
- How has Shariah compliance for Islamic financial institutions (IFIs) evolved?
- Whose definition of Shariah compliance should we follow?
- Understanding Shariah governance approaches internationally
- Brief comparative case studies of major Islamic finance jurisdictions
- Ethics, governance and Shariah decision-making – updates from standard-setting institutions
- The Shariah governance environment in Malaysia: from Shariah Governance Framework to Shariah Governance Policy Documents
- Key Bank Negara Malaysia requirements
12.30pm to 1.30pm Lunch
Session 2: New Tools for Managing Shariah Risk and Shariah Non-Compliance Risk
- Shariah risk management approaches and how they differ across jurisdictions
- The Malaysian IFI Shariah risk management expectations
- The Malaysian Shariah non-compliance (SNC) process
- SNC identification, reporting and remediation
- Systemic and operational SNC
- Root cause analysis and remediation methods
- Shariah committee responsibilities
- Regulatory reporting and follow-up
- Class discussion
(Coffee breaks: 10.30am – 11.00am & 3.30pm – 4.00pm)
Session 1: Implementing Effective Shariah Stress Testing in Today’s Islamic Financial institution
- Preparing for all eventualities and reducing Shariah non-compliance risk
- Shariah risk visualisation, dashboards and heatmaps
- Shariah non-compliance stress testing
- What does Shariah stress testing entail?
- Designing stress-testing scenarios for Shariah non-compliance
- Which external factors does Shariah stress testing cover: economic conditions, borrowing rates and others
- Forecasting regulatory and Shariah resolution amendments based on macro and micro economic factors
12.30pm to 1.30pm Lunch
- ESG and sustainability integration in Shariah compliance – VBI 2.0
- Understanding the impact of sustainability objectives, including climate change, on future Shariah compliance
- Integrating social impact criteria within the stress testing models
- Assessing the Shariah stress test models, revising and categorising risks
- Applying historic outcomes from existing stress test models to future planning
- Final class discussion
EXPERT COURSE DIRECTOR
Dr Ziyaad Mahomed
Assistant Professor Centre of Excellence in Islamic Social Finance at INCEIF
Dr Ziyaad Mahomed is an Islamic finance scholar from South Africa, providing Islamic finance and Shariah advisory since 1998. He served as Associate Dean and Director of E-Learning & Executive Education at INCEIF for 3 years. He is currently Assistant Professor, Lead Researcher (Shariah) at the Centre of Excellence in Islamic Social Finance at INCEIF, and Head of Online Programs. He specializes in Shariah (Islamic jurisprudence), Islamic Social and Sustainable Finance, Fintech and Islamic Capital Markets. Dr Ziyaad has provided training and advisory on almost all aspects of Islamic finance in more than 20 countries, to more than 12,000 Finance Professionals and Islamic Scholars, and was awarded a lifetime achievement honor in recognition of his contribution to Islamic finance in Africa. He also serves as advisor/consultant on fintech, Islamic social finance and Sukuk to government organisations in the United Kingdom, Kazakhstan, the Philippines, and Nigeria amongst others. Dr Ziyaad serves as Chairman of the Shariah committees of HSBC Amanah (Malaysia), Taj Bank (Nigeria), Ayady Takaful (Maldives), iConsult Africa (South Africa), FBN Quest Asset Managers (Nigeria) and Iman Ltd (Uzbekistan) among others. He also serves as Shariah Board Member of the Bank of Maldives Islamic and other Islamic financial service institutions internationally. He has served as the External Shariah Auditor for some of the largest Islamic financial institutions in the Middle East, Africa, and South-East Asia since 2006.
Who Will Benefit?
- Shariah risk professionals
- Shariah compliance, audit and review professionals
- Shariah advisory committee and research officers
- Compliance and in-house counsel
- Risk and internal audit managers
- Product development professionals
- Operations managers
- Consultants and advisors
- Islamic bankers and managers
- Regulators and supervisors
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22