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On the basis of the principles established in Shari’ah, financial services impact both risk management and the financial system supervision. In the context of Islamic financial institutions around the globe, proficient risk management has increasingly gained importance in their attempts to adapt to the challenges and issues brought about by globalization. In this study, the researcher aimed to provide an insight into the major challenges faced by Islamic banks in their quest for development in the current global financial system. It also attempted to determine specific and general risks faced by banks in general and in their institutionalization. Moreover, this paper also stressed on the development and enhancement of current financial tools and organizational planning that facilitate sufficient and effective operational environment for Islamic financial institutions.
REYADH NOFAN SAID AL-ADWAN. (2014) Risk Management in Islamic Banking, International Review of Management and Business Research, Volume 3, Issue 4.
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