IFIs are facing risk management challenges, despite their rapid growth, which has implications on their financial stability. A sound risk management process may contribute to reduce IFIs exposure to risks and enhance their ability to be competitive. The competitive advantage mainly depends on how IFIs identify, quantify and monitor their specific and more complex nature of risks. Furthermore, limited progress is observed in the industry regarding the design of Shariah compliant safety net frameworks and products for risk management purposes which additionally raises financial stability concerns. The general perception in the market is that current Islamic hedging financial products are mere imitations of their conventional counterparts and have failed to bring the socio-economic impact expected from implementing the rules of Shariah in the financial industry. Therefore, there is a real need to create a new generation of Islamic financial products that contribute positively to mitigate risks with achieving Maqasid Al’ Shariah.
We are interested in original papers that could address, but are not limited to, the following topics:
Topic 1: Risk management in IFIs Credit, Market, Liquidity and Operational risks; Risk sharing, displaced commercial risk and regulatory capital; Islamic business model and margin risk; Shariah compliant, reputational and legal risks; Asset portfolio management, PSIAs, risk taking and capital decision; Stress testing methodologies; Islamic rating models design and implementation; Value-at-risk and quantitative measures of risk; Fintech, cryptocurrencies and technological risk; Treasury management and liquidity risk; Islamic microfinance, Takaful, Re-takaful and related risks.
Topic 2: Corporate finance and financial stability in IFIs Corporate and Shariah governance, governance risk and financial stability; Gharar, information asymmetries and financial stability; Efficiency, profitability and financial stability; IFRS & AAOIFI standards, reporting risk and risk management.
Topic 3: Regulation and financial stability in IFIs Basel accords & IFSB standards implementation and financial stability; Macro-prudential dimension and financial stability; PSIAs, market discipline and financial stability; Liquidity risk in IFIs, contagion risk and financial stability; Measurement of systemic risk for IBs; Incentive based regulatory framework in Islamic financial system; Resilience assessment and stability; Depositors protection and financial stability; Shariah-compliant deposits insurance schemes design; Central banks, macro-prudential supervision and financial stability; Solvency and Capital Adequacy in Takaful; Islamic Investment funds, shadow banking and systemic risk; Regulation of IFIs; Nexus between financial stability and monetary stability.
Topic 4: Financial engineering and financial stability in IFIs Artificial intelligence, innovation and risk management; Islamic hedging products and derivatives; Role of corporate governance in financial engineering financial stability; Challenges Encounter by financial engineering; Innovation and financial stability; ALM, liquidity management and financial engineering.
Topic 5: Fiqh issues in risk management in IFIs Contemporary fiqh issues in risk management; Shariah Non-Compliance risk; Fiqh appraisal of risk management processes and instruments; Shariah compliance in regulation issues; Shariah auditing and risk management; Maqashid Al-Shariah and risk management; Challenges for setting Shariah standards; Morals issues in risk management