“…Some essential considerations for EIR that have been presented by the SBP ( 2008 The financial sector flourishes as per the active role of risk management. How-ever, as far as Islamic banks are concerned, the concept of risk management needs to be explored (Rehman, Ibrahim, Tohiri.,Suryaputri, & Vitariamettawatym, 2016) as the vast literature is available on Non-Islamic banks (Ratnovski, 2013;Lee, 2015;Cebenoyan & Strahan, 2004). The risk management studies with respect to Islamic banking have been carried out in Gulf countries (Ali & Naysary, 2014;Abu Hussain & Al-Ajmi, 2012;Abdullah, Shahimi, & Ismail,.2011;Hassan, 2011), some other countries (Rahman, Ibrahim, Tohirin, & Suryaputri, 2016;Muhammad, 2016;Hafez, 2015) and minimal studies in Pakistan (Khalid & Amjad, 2012;Ahmad et al, 2013).…”