Shariah Governance, Advisory, Audit & Risk Management for Islamic Financial Institutions

SIDC CPE - accredited: 10 CPE Points

Date: 6th December 2016 Venue: Kuala Lumpur


09:00 – 09:15 Welcome Remarks
09:15 – 10:15 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 
  • Overview of recent Bank Negara Malaysia requirements for Shariah advisory boards
  • 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
  • Practicalities of Shariah risk assessment tools and importance of Shariah key risk Indicators in managing Shariah risk within an Islamic financial institution
Mohd Nazri Chik — Group Chief Shariah Officer, BIMB Holdings Berhad
10:15 – 11:15 Update on Regulatory Issues: Shariah Risk, Governance and Compliance with Islamic Financial Services Act 2013
  • Bank Negara Malaysia: Islamic Financial Institutions Reference Manual for Shariah Advisory Boards – should this be reflected in the title? It’s new.
  • 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
Mohd. Johan Lee — Partner, J Lee & Associates
11:15 – 11:30 Coffee & Networking
11:30 – 12:30 Planning and Managing an Effective Shariah Audit Program for an Islamic Financial Institution
  • 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
Nik Shahrizal Sulaiman — Senior Executive Director, PwC
12:30 – 13:15 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
Noor Azian Ismail — Head, Group Audit - Islamic Banking of Maybank Berhad
13:15 – 14:00 Luncheon
14:00 – 15:00 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 non-compliant risk in Islamic banks
Ahmad ‘Arif Mohd Arshad — Head of Shariah Compliance, RHB Bank Berhad (RHBB)
15:00 – 15:30 Coffee & Networking