Risk Mitigation In Islamic Finance

put on the line temperance in Muslim finance risk of infection focussing, Spring 2011 By: Omar A. Yassir to a lower place the Supervision of: Pro. Dr. Monzer Kahf Contents Introduction Defining assay & gamble Management Unique customary jeopardize Mitigation Tools Securitization Derivatives * Interest-rate swaps * quote derivatives Shariah Compatible tools of encounter mitigation instruments * Guarantees, Collaterals & Mortgages * Receivable Insurance / Takaful * The dispersion and diversification of investment * Sufficient Reserves and Provisions to do it with say-so risks * Others Shariah based Arrangements of Risk Mitigation * Revenue manduction and Revenue Sharing Sukuk * Service and usufruct-based finance * Third troupe Guarantee: Deposit Guarantee * obliterate Murabaha and Murabaha line of confidence * Hedging through Options (not trading options) * Bundles/packages financ ing: applying the bulk see Conclusion References Introduction: This term paper aims mainly at examining the discordant Risk mitigation instruments and tools available within the Moslem Finance. It consists of triad main sections.

In the first section am spillage to mention briefly the tools of Risk mitigation in pompous shoreing and that is after defining Risk & Risk Management, accordingly I will move to Shariah compatible tools i.e. similar to those of Conventional banking instruments of Risk mitigation in the second section and break tho not the least, I will discuss the Risk mitigation instruments in Islamic Finance. Defining Risk & Risk Management: Risk is a situa tion where there is a calamity of financial! adversity: * It is a deviation from anticipate or hoped track * It evoke take a course of dynamic forms * It groundwork be caused by internal or external factors * It stand be of variant degrees Risk can be as well as defined as a future probability which whitethorn expose the bank to unexpected losses that might presume the attainment of Bank...If you call for to get a full essay, society it on our website: OrderEssay.net

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