Institute of Social Sciences · Islamic Economics and Finance (English) · Master
Course Objective
The primary purpose of this course is to provide a reference point represents state-of-the-art thinking, theories and practices on all of the major topics in risk management in Islamic financial institutions and provides an overview of the evaluating and managing all types of financial and business risks, moreover the course will show the Risk management for the Islamic finance contracts and activities and also shed the light on the Framework for Risk Analysis in Islamic financial system and Bank regulations.
Course Content
On completion of this module the students will be able to:
1. Identify the key risks existing within the Islamic Finance ;
2. Understand the Framework for Risk Analysis in Islamic financial system;
3. Explain the aspects of quantitative and qualitative analysis of risk;
4. Describe the key factors that affect the financial risk;
5. Explain the different types of financial and business risk;
6. Evaluate and Apply the risk management methods in the current Islamic finance contract;
7. Identify the Bank regulations (Basel III and IFSB);
8. Discuss the Risk mitigating instruments in Islamic Finance.
Course Learning Outcomes
- Identify the key risks existing within the Islamic Finance ;
- Understand the Framework for Risk Analysis in Islamic financial system
- Explain the aspects of quantitative and qualitative analysis of risk;
- Describe the key factors that affect the financial risk;
- Explain the different types of financial and business risk;
- Evaluate and Apply the risk management methods in the current Islamic finance contract;
- Identify the Bank regulations (Basel III and IFSB);
- Discuss the Risk mitigating instruments in Islamic Finance
Core Area Distribution
Teaching Methods
Assessment & Evaluation
ECTS / Workload
| Activity | Quantity | Duration (h) | Total Workload |
|---|---|---|---|
| Course Duration (Including Exam Week) | 16 | 3 | 48 |
| Out of Class Study Period | 16 | 6 | 96 |
| Midterm | 1 | 4 | 4 |
| Quiz | 0 | 0 | 0 |
| Assignment | 2 | 18 | 36 |
| Practice | 0 | 0 | 0 |
| Final | 1 | 3 | 3 |
Course Schedule
| Week | Subject | Preparation |
|---|---|---|
| 1 | An overview of • Risk Management: Basic Concepts and Techniques • Financial Balance‐Sheet and Income‐Statement Structure • Risk management process | - |
| 2 | Framework for Risk Analysis in Islamic financial system | - |
| 3 | Risk management for the IF contracts and activities 1 | - |
| 4 | Risk management for the IF contracts and activities 2 | - |
| 5 | Credit Risk Management | - |
| 6 | Market Risk Management | - |
| 7 | Liquidity risk Management | - |
| 8 | Mid Term Examination | - |
| 9 | Other types of risk: Operational risk Management | - |
| 10 | Other types of risk: Shariah non-compliance risk and Shariah compliant parameter | - |
| 11 | Bank regulations - Basel III | - |
| 12 | Bank regulations - Islamic Finance Service Board (IFSB) | - |
| 13 | Risk mitigating instruments in IFI - Derivatives | - |
| 14 | Issues in Risk Management for Islamic finance | - |
| 15 | Other Special Topics in Risk Management | - |
| 16 | Final Exam | - |