RISK MANAGEMENT IN ISLAMIC BANKING: PRINCIPLES, PRACTICES, AND CHALLENGES
DOI:
https://doi.org/10.5281/zenodo.17436605Keywords:
Islamic Banking, Risk Management, Islamic Finance, Riba, Risk-Sharing, Ethical Investment, Challenges, Practices.Abstract
This article explores the principles, practices, and challenges associated with risk management in Islamic
banking. With the rising prominence of Islamic finance globally, particularly in countries with large Muslim populations,
it is crucial to understand the unique aspects of risk management that differentiate Islamic banking from conventional
banking systems. The study focuses on key Islamic finance principles such as the prohibition of interest (riba), risksharing,
and ethical investment, which influence the way risks are identified, assessed, and managed. By conducting
a comprehensive review of existing literature and analyzing current practices, this paper provides a detailed overview
of the risk management framework in Islamic banks, highlighting both the advantages and challenges inherent in these
systems.
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