Risk Management of Financial Instruments in Islamic Banks: An Overview

Authors : Abderrahmane SAKOUİLİ, Chroqui RAZANE

Pages : 20-39

Doi:10.25272/ijisef.419518

View : 19 | Download : 11

Publication Date : 2019-03-31

Article Type : Review Paper

Abstract :Risk management plays a major role in the success and survival of various financial institutions around the world. Islamic Financial institutions not being the exception, on the contrary, given the authenticity of their modus operandi and the nature of their financial products, are obliged to use more credible and rigorous risk management systems. A thorough review of the Islamic economy literature based on books, research articles, monographs and reports, was conducted to prepare this study. The main objective is to define and explain the risk management tools insert ignore into journalissuearticles values(Urboun, Hamish al- Jiddiyah, Khiyarat, Rahn, etc.); used by Islamic financial institutions in financing instruments insert ignore into journalissuearticles values(Mourabaha, Ijarah, Salam, etc.);, in order to unveil their nature and specificity. Which enabled the creation of a summary   table presenting the Risk management tools, the products in which they are used and the risks for which they are used.
Keywords : Islamic financial institutions, Risk management tools, Financing instruments