Risk Management Practices In Islamic Banking Institutions: A Comparative Study Between Malaysia And Jordan

Abstract

The results of the analysis revealed that factors, such as the level of understanding risk management, risk assessment and analysis, risk control, and monitoring, feature more prominently in Malaysian Islamic Banks than in their Jordanian counterparts. However, Jordans IBs are ahead in terms of the level of risk management practices. Both countries are similar in their risk identification. It is also found that Islamic Banks in Malaysia and Jordan are somewhat reasonably efficient in managing risk where risk assessment and analysis (RAA), and risk control and monitoring (RCM) are the most influencing variables in RMPs in Malaysia; whilst understanding risk management (URM) and risk control and monitoring (RCM) are good predictors of RMPs in Jordan.

Teori Manajemen Resiko Bank Syariah

“…Banyak penelitian (misalnya, Rahman et al, 2014Rahman et al, & 2016Khattak et al, 2013;Khalid & Amjad, 2012;Hassan, 2009;Hussain & Al-Ajmi, 2012;Mohamed, 2018;Ariffin & Kassim, 2014;Rosman & Rahman, 2013;Ahmad et al, 2013) telah dibahas pada praktek manajemen resiko pada bank syariah. Namun, sebagian besar studi sebelumnya hanya terkonsentrasi di negara-negara tertentu (misalnya : Malaysia, Pakistan, lintas negara) dan studi gagal untuk mengenali berbagai pendekatan dalam manajemen resiko digunakan oleh bank syariah untuk resiko unik.…”

A Systematic Literature Review on the Effects of Risk Management Practices on the Performance of Islamic Banking Institutions

“…IBIs are keen to monitor risk especially in their daily operations. They always consider Shariah compliance issue in monitoring process (Abdul Rahman et al 2014). Hence, Islamic banking has in place Shariah committee and Risk management committee in the governance structure to perform monitoring and oversight function and also to ensure the soundness and effectiveness of the overall risk management on a bank-wide level.…”

“…IBIs currently facing new and unique risks, so management should implement appropriate and best control practices to protect institutions from negative events (Abdul Rahman et al 2014). According to Mohd Ariffin and Kassim ( 2011), Islamic banking already has proper internal control of its banking operations.…”

“…Many studies (e.g., Abdul Rahman et al 2014Rahman et al , 2016Khattak 2013;Khalid & Amjad 2012;Hassan 2009;Hussain & Al-Ajmi 2012;Muhammad 2016;Mohd Ariffin & Kassim 2014;Rosman & Abdul Rahman 2013;Uddin 2015;Ahmad et al 2013) have been discussed on RMPs in IBIs. However, most of the past studies only concentrated in certain countries (e.g., Malaysia, Pakistan, Cross-countries) and the studies failed to recognize the different approaches in risk management used by IBIs for unique risks.…”

The Impact of External Shari'ah Auditing on the Efficiency of Jordanian Islamic Banks Performance

“…-Risk assessment Rahman, Alsmady, Ibrahim and Muhammad (2014) claimed that usually the risk assessment is considered as one of the most challenging tasks. Comprehensive and systematic procedures of risk identification are essential in ensuring the accuracy of risk assessment (Chapman, 1998).…”