Risk management in Islamic finance
Day 1:
Introduction to Islamic finance
- Definition and history of Islamic finance
- Foundations of Islamic finance
- The Islamic finance market
Part 1:
Sharia-compliant products
Islamic finance products
- Shariah-compliant contractual tools
- Islamic bonds: the sukuk market and structuring
Financial innovation
- Derivatives and structured products: the conventional approach
- Financial engineering: structuring Shariah products
Exercises: Identifying non-Shariah-compatible clauses in conventional termsheets
Day 2:
Part 2:
Measuring and monitoring risk in Islamic finance
Quantitative risk management concepts and techniques
Process for managing specific risks
- Islamic bank financial statements
- Confusion of risks in Islamic finance
- Risks connected with sukuk issues
- Risk management under the Basel II regulations
Exercises: Calculating risk provisions in Islamic finance