Programme Code: PC5053
Medium of instructions:
Prof. Dr. Saiful Azhar Rosly
An Islamic financial institution (IFI), as a business entity is not exempted from both systematic and unsystematic risks. If all the risks are properly identified, measured and mitigated, an IFI’s overall mission, goals and objectives will not be severely jeopardized. Students are not only being exposed but are also required to learn about the fundamentals of risk and their management. In addition, the current risk environment, risk issues, frameworks, guidelines, standards and strategies will also be discussed.
The objective of this course is to equip students with the fundamentals of risk management in finance. Special emphasis will be accorded towards risk management in Islamic financial institutions. In addition, knowledge on risk issues both at macro and micro levels such as risk philosophy, policy, process, framework, guidelines, strategies and regulatory requirements will also be disseminated to students, complete with quantitative tools to measure various types of financial risk, operational risk and capital adequacy. Shariah risk and fiduciary risk that are peculiar to Islamic financial institutions will also be emphasized.
By the end of this course students should be able to :
Describe the existence of risks in banking and finance and the concept of risk from the Islamic perspectives.
Distinguish the different types of risk and be familiarised with the risk management process, and the regulatory requirements and governance.
Apply the quantitative tools and techniques in identifying and measuring the various types of risk.