1. Growth in Islamic Finance Spurs Need for New Risk Management Methodologies
Two globally recognizedorganizations have teamed up to take on this challenge -- the GlobalAssociation of Risk Professionals (GARP: www.garp.org) and the Banque du Liban(www.bdl.gov.lb). They will jointly develop a first-of-its-kind Certificatein Risk Management for Islamic Financial Institutions due to be launched inlate 2008.
The expertise on Islamic finance from the Banque du Liban combined withGARP's proficiency in creating globally accepted standards on risk managementmethodologies, such as their globally recognized FRM program, will result in abenchmark approach to assessing risk around Sharia'a-compliant financialproducts. "There will be much input from experts around the world to make surewe get this right," said Chris Donohue, PhD, Head of GARP's Research Center."We will have a Technical Committee that will work on developing the contentfor the Certificate and an Advisory Group comprised of Islamic banking andderivative product experts to give us feedback throughout the process." The Advisory Committee will be co-chaired by Dr. Ahmed Jachi, ViceGovernor of Banque du Liban and Dr. Anthony Saunders, Professor of Finance atNew York University's Leonard Stern School of Business.
2. Book on financial risk management and Islamic Finance:
Risk management for Islamic banking financial products and services is one of the greatest challenges that many westernized, as well as Islamic Banks, are facing today.As a result of this market growth in Islamic financial products there is a high demand to understand how to assess and manage the risks arising from applying these products and services. Credit, operational, market and liquidity risks together with the risk of non compliance with the Shariah law are becoming very hot issues for financial institutions. This book presents a common framework of how to efficiently manage the risks faced and minimise the overall degree of Islamic financial risks. This book is a valuable guide for those working in both non-Islamic and Islamic finance.
Contents Principles of Islamic FinanceRisk Management Issues in Islamic Financial ContractsBasel II & IFSB for Islamic Financial RiskMarket Risk in Islamic FinanceCredit Risk in Islamic FinanceOperational Risk in Islamic FinanceConcluding Remarks
All this to be taken with a grain of piquant salt!!!