Shariah Compliance and Shariah Stress Testing for Islamic Financial Institutions

Shariah Compliance and Shariah Stress Testing for Islamic Financial Institutions
Employing the Latest Tools to Enhance the Resilience of Islamic Financial Institutions

Date: 26^th & 27^th July 2023
Venue: 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

Fee

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.

In-house/group training

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

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: 26^th & 27^th July 2023
Venue: Kuala Lumpur

Classroom Training

COURSE BACKGROUND

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

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

Fee

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.

In-house/group training

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

Day One (9.00am to 5.00pm)

(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

Day Two (9.00am to 5.00pm)

(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

REGISTRATION

*Please note there is a fee for attending this program. Please contact us for more details.

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Before completing this registration form please read and understand our booking and cancellation policy. Thank you.

Presentation materials: – important, please read carefully

as part of our sustainability drive, we offer standard access to an electronic version of the course materials. A hard copy of the materials can be provided for a fee: RM100 per copy for Malaysia-based participants; US$150 per copy for all other locations.

Please tick here should you wish to receive a hard copy of the course materials.

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By completing, signing and revised, sent separately us this registration form you are conﬁrming participants on the program. You are also conﬁrming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation Policy: If participants cannot attend the program, replacement participants are always welcome. Otherwise, participants must notify us any of cancellations or requests to transfer to a diﬀerent program at least 14 days before the program date to be eligible for a refund, less a 5% administration on fee. Participants who cancel within 14 days of the program start date are liable to pay the full program fee and no refunds will be given. Instead fees will be converted to a REDmoney Seminars voucher equivalent to the original fee, less a 10% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a program is postponed for whatever reason registrations and fees will be automatically transferred to the new program date. Participants who wish to transfer to a diﬀerent program will be subject to the same terms as above and charged any diﬀerence in fees. No refunds or program vouchers will be issued for a no-show.
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CPE/CPD Applicable:

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