Shariah Governance, Audit, Risk Management & Reporting
Date: 20th April 2016 Venue: DoubleTree Hotel, Kuala Lumpur


09:00 - 09:15 Welcome Remarks
09:15 - 10:00 An Overview of Shariah Risk and Review for Islamic Financial Institutions and Highlighting Where Banks are Exposed
  • Main functions of Shariah risk management as required by Shariah Governance Framework and role of Shariah Committee in Islamic financial institutions
  • Shariah Review vs. Audit vs. Risk Management: overlapping and key differences in term of function
  • Types and common examples of Shariah risks inherent in Islamic financial institutions: product flaws in documentation or structure, gap between Islamic banks’ practices & regulatory requirement and potential flashpoints
  • Shariah and operational risk: tools, scope and key processes in common
  • Overview of relevant local regulation and reporting requirements
  • Practicalities of Shariah risk assessment tools and importance of Shariah key risk Indicators in managing Shariah risk within an Islamic financial institution
Panelist: Associate Professor Dr. Rusni Hassan — Member, Shariah Advisory Council, Bank Negara Malaysia Deputy Dean, IIUM Institute of Islamic Banking and Finance
10:00 - 10:50 Update on Regulatory Issues: Shariah Risk, Governance and Compliance with Islamic Financial Services Act 2013
  • Overview of IFSA 2013 and the comprehensive legal framework it establishes for the Islamic banking sector in Malaysia: obligations and responsibilities of Shariah advisors and bank management
  • Implications of the act for Shariah audit, Shariah risk management and compliance functions within an Islamic financial institution
  • Ensuring Shariah audit, governance and compliance policies and procedures are in compliance with IFSA 2013
  • Where do we stand with regards to IFSA 2013 today, in 2016? Towards implementing an effective Shariah risk management, Shariah audit and governance for Islamic banks
Panelist: Mohd. Johan Lee — Partner, J Lee & Associates
10:50 - 11:20 Coffee & Networking
11:20 - 12:20 Planning and Managing an Effective Shariah Audit Program for an Islamic Financial Institution
We invite Sukuk issuers, such as the government of Oman, Omantel and Oman Air, to offer their views on why they chose to raise funds Islamically. Can the Sukuk issuance process be simplified? What are the challenges that need to be addressed and what ultimately contributed to the success of each deal?
  • Aims and objectives of a modern Shariah Audit: features, components, planning
  • Tools, checklists and processes for assessing Shariah key risk indicator and non-compliance within the audit process
  • Shariah audit versus a Shariah review – key similarity and differences
  • Risk identification and mapping in preparation for an effective Shariah audit
  • Reporting procedure for a Shariah audit
Panelist: Nik Shahrizal Sulaiman — Executive Director, PwC
12:20 - 13:20 Luncheon
13:20 - 14:10 Shariah Non-Compliance Reporting: What it means for Islamic Financial Institutions
  • Responsibilities of an IFI and relevant stakeholders with regards to Shariah non-compliance reporting
  • Reporting requirements in Malaysia: Practical issues with Shariah non-compliance reporting within Islamic Banks
  • Rectification options and procedure, non-halal income management and purification
  • Hot spot areas or activities which will trigger Shariah noncompliant risk in Islamic banks
Panelist: Ahmad Mukarrami Ab Mumin — Head, Shariah Division, RHB Islamic Bank
14:10 - 15:00 The Internal Auditor’s Role in Managing Shariah Risk, Governance & Compliance
  • Where Shariah audit and internal audit meet and overlap
  • Responsibilities and jurisdictions of each function
  • The role of the internal auditor in planning and implementing a Shariah audit
  • Internal audit planning, fieldwork and reporting within an
    Islamic financial institution
Panelist: Noor Azian Ismail — Head, Group Audit - Islamic Banking, Maybank
15:00 - 16:00 Moderated Panel: The Future Direction, Requirements and Responsibilities of Shariah Governance, Control and Risk Management Function in Malaysia
  • Burden of existing and potential banking legislation
  • Managing and building a team: human capital issues
16:00 - 16:30 Coffee & Networking
16:30 End of Seminar