An Introduction to Islamic Finance: Theory and Practice

Risk Profile of Islamic Financial Institution

Financial Risk

Credit Risk

Rate-of-

Return Risk

Asset andLiability

Management

Risk

Operational

Risk

Reputation

Risk

Transparency

Risk

Shari’ah

Risk

Fiduciary

Risk

Hedging Risk

DisplacedCommercial

Risk

Withdrawal Risk

Solvency Risk

Market Risk Equity Risk

Mark-Up Risk

FX Risk

Commodity Risk

Business Risk

Treasury Risk

Governance Risk

FIGURE 13.1

Overview of risk profi

le of an IFI

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