Risk Management in Islamic Banks

Risk Management in Islamic Banks
Understanding, Identifying, and Managing Key Risks

Date: 23^rd & 24^th June 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE DESCRIPTION

An objective analysis of the Islamic financial services industry indicates that standardization of products and systems is still to be achieved. Variances in product offerings have clear implications for the commercial and other viability of products, which can be better understood by analysing the associated risks, concerns and flashpoints that exist in relation to each. The most important of these concerns relate to Shariah risk and credit risk, as well as to certain other types of risks. The need to possess sound knowledge of products and their associated issues and risks is a vital one and is fundamentally relevant to many parts of the bank.

Furthermore, numerous standards and guidelines have been produced by standard-setting bodies that provide crucial guidance regarding implementation of best practice and oversight in relation to risk management within Islamic Banks. The most relevant of these relate to overall risk management, liquidity risk management, and Shariah governance requirements which connect with risk issues. It is essential for Islamic finance professionals to have adequate knowledge of such best practice principles to effectively and efficiently execute their responsibilities.

Keeping the above in mind, this practical and interactive course has been designed to provide comprehensive coverage of the key issues relating to risk management in Islamic Banks.

This course will provide an excellent opportunity for individuals to strengthen their understanding of key risks in product structuring and management. In addition, it will also be highly beneficial to those with an intermediate grasp of the subject to plug their knowledge gaps and gain a well-rounded understanding of the overall subject of risk management in Islamic Banks.

Discussion will be supplemented by the use of practical examples and exercises to gain a sound understanding of the overall subject matter.

Key Highlights and Takeaways:

Gain familiarity with the various IFSB regulations and guidelines relating to overall risk management, liquidity risk management, and Shariah governance requirements which connect with risk issues.
Understand the different types of key risks that exist in Islamic Banks’ products, and to understand how to minimize and mitigate them.
Examine the spectrum of risks relating to the operation of all major and relevant product types, and the main variants within those product types.
Identify key potential obstacles to help us understand how to offer these products in the best possible way, with the minimum risks.

Fee

Fee per participant: RM5,250/US$1,350

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. 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

Risk Management in Islamic Banks
Understanding, Identifying, and Managing Key Risks

Date: 23^rd & 24^th June 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE DESCRIPTION

Keeping the above in mind, this practical and interactive course has been designed to provide comprehensive coverage of the key issues relating to risk management in Islamic Banks.

Discussion will be supplemented by the use of practical examples and exercises to gain a sound understanding of the overall subject matter.

Key Highlights and Takeaways:

Gain familiarity with the various IFSB regulations and guidelines relating to overall risk management, liquidity risk management, and Shariah governance requirements which connect with risk issues.
Understand the different types of key risks that exist in Islamic Banks’ products, and to understand how to minimize and mitigate them.
Examine the spectrum of risks relating to the operation of all major and relevant product types, and the main variants within those product types.
Identify key potential obstacles to help us understand how to offer these products in the best possible way, with the minimum risks.

Fee

Fee per participant: RM5,250/US$1,350

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. 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

Part 1: Introduction and Reminder of Key Issues

Overview - key issues:
- Islamic Finance: theory vs practice
- Working within the structure
- Compulsory vs voluntary
Key components of Islamic Finance contracts:
- Prohibitions
- Necessary elements

Risk Management and the Standardization of Islamic Financial Products

Understanding the issues
Relevance vis-à-vis product offerings
Role of important standard-setting bodies:
- AAOIFI
- IFSB
- OIC Fiqh Academy
- IIFM

A Detailed Examination of Varying Risks Faced by an Islamic Bank

Shariah risk
Credit risk
Market risk
Operational risk
Rate of return risk
Legal risk
Reputational risk
Other risks

Part 2: Best Practice in Relation to Managing Risk Overall and the Associated Relevance of Shariah Governance

Standards, Regulation and Guidelines

Guiding principles of risk management
Guiding principles of Shariah governance systems
Liquidity risk management

Part 3: Products and Product Variants: Structure, Operation, Issues and Risks

Murabahah

Goods/auto
LC/IBC
Goods/LC/IBC with agency
Open account
Property/asset finance
Murabahah with shares
Murabahah-based running finance
Bill discounting alternative

Case Study: Structuring a product designed to fulfil a specific and challenging trade finance need

Day Two

9:00am to 5:00pm

Part 3: Products and Product Variants: Structure, Operation, Issues and Risks (continued)

Tawarruq/Commodity Murabahah

Running finance
Trade payments
Settlements
Debt/retrospective financing
Cash in hand
Debt relief

Ijarah

Property finance
- Standard
- Forward Ijarah & Istisna
Goods/auto finance
Sale and lease back
Purchase and lease
Ijarah-based running finance facility
Service Ijarah

Mudarabah/Musharakah

Trade/re-export
Running finance
Construction finance
Bill discounting alternative

Diminishing Musharakah

Home finance
Asset finance

Salam

Personal finance facility
Agricultural finance

Istisna

Property/asset finance
Processed commodities

Credit cards

Fee-based
Services based (with associated fee)
Other types

Current accounts

Deposit accounts

Mudarabah/Musharakah/Wakalah

Case Study: Examining a popular product to identify the various risks at each stage of offering

EXPERT COURSE DIRECTOR

Dr Salman Khan
Former Head of Shariah Office (Dubai & the Northern Emirates), Abu Dhabi Islamic Bank

Dr Salman Khan is an experienced and versatile professional with 18 years of experience in senior, managerial and advisory positions in Islamic banking, capital markets, financial regulation, economics, and finance. Dr Khan obtained a DPhil in Economics from Oxford University, an MPhil in Development Studies from Cambridge University, and a BSc (Hons) in Economics from UCL. Dr Khan worked in ADIB as Head of the Shariah Office (Dubai & the Northern Emirates) for 7 years, where he was a key member of the capital markets core structuring and execution team and worked on numerous high-profile transactions in GCC, European and Asian markets. At ADIB, Dr Khan also provided Shariah consultations on a daily basis and performed in-depth Shariah review of legal documentation for the full range of Islamic (retail, commercial & corporate) banking products. Following this, Dr Khan served as senior advisor to the Executive President of the Financial Services Authority in Oman (apex regulator of the Omani stock market, investment funds and insurance sector). Dr Khan’s work centred on regulation, reform and development of the stock market and the asset management sector. Dr Khan also advised frequently on economic issues, for instance related to corporate tax policy and reform. Dr Khan has worked for 15+ years as an Islamic finance consultant and trainer with numerous organisations including the World Bank, Arab Monetary Fund, UKIFC, Institute of Islamic Banking & Insurance (UK), IFN/REDmoney, and Euromoney. Dr Khan has also worked for several years as an economics consultant with various developing nation government organisations.

Who Will Benefit?

CEOs
Heads of risk
CFOs
Financial risk managers & analysts
Market risk managers & analysts
Product structurers
Credit risk managers and analysts
Corporate bankers
Commercial bankers
Retail bankers
Shariah auditors
Compliance officers

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.

Booking, Payment and Cancellation Policy – important, please read carefully

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.
Payment Terms: All program fees are payable upon invoice. REDmoney shall receive the full program fee with no deductions of any description. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the sponsoring organization.

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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