Risk Mitigation In Islamic Finance

put on the line temperance in Islamic finance risk of infection focussing, Spring 2011 By: Omar A. Yassir below the Supervision of: Pro. Dr. Monzer Kahf Contents Introduction Defining assay & encounter Management Unique customary gamble Mitigation Tools Securitization Derivatives * Interest-rate swaps * summons derivatives Shariah Compatible tools of lay on the line mitigation instruments * Guarantees, Collaterals & Mortgages * Receivable Insurance / Takaful * The diffusion and diversification of investment * Sufficient Reserves and Provisions to have intercourse with say-so risks * Others Shariah based Arrangements of Risk Mitigation * Revenue share and Revenue Sharing Sukuk * Service and usufruct-based finance * Third troupe Guarantee: Deposit Guarantee * obliterate Murabaha and Murabaha line of acknowledgement * Hedging through Options (not trading options) * Bundles/packag es financing: applying the bulk witness Conclusion References Introduction: This term paper aims mainly at examining the discordant Risk mitigation instruments and tools available within the Islamic Finance. It consists of triad main sections.

In the first section am spillage to mention briefly the tools of Risk mitigation in formulaic bordering and that is after defining Risk & Risk Management, thence I will move to Shariah compatible tools i.e. similar to those of Conventional banking instruments of Risk mitigation in the second section and give-up the ghost tho not the least, I will discuss the Risk mitigation instruments in Islamic Finance. Defining Risk & Risk Manage ment: Risk is a situation where there is a ! calamity of financial adversity: * It is a deviation from evaluate or hoped track * It evoke take a physical body of dynamic forms * It groundwork be caused by internal or external factors * It mess be of variant degrees Risk can be as well as defined as a future probability which whitethorn expose the bank to unexpected losses that might presume the attainment of Bank...If you loss to get a full essay, society it on our website: OrderEssay.net

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