Enterprise Risk Management for Islamic Bank

Certificate of completion (supplied by PasarTrainer)

Training Material

* Practicing Risk Identification  
* Practicing Risk Analysis
* Designing Risk Evaluation
* Determining Risk Treatment  


This module explains the concept of ERM both from theorical and practical perspectives


Module 3. Understanding Enterprise Risk Management Framework  

A multiple-choice test to assess the participants' proficiency level prior to enrolling in the training program.


Pre-Test (20 Questions - Closed Book)

A group role play or exercise (case study) where participants are asked to design ERM for above- mentioned risks


Group exercise and Presentation  

* Understanding Islamic Bank  
* Aqad in Islamic Bank
* Products and Services of Islamic Bank
* Business Opportunities for Islamic Bank
* Risks and Specifc Risks of Islamic Bank  



This module explains business model of Islamic banks, how it is different with conventional banks, as well as opportunities and risks belong to this model


Module 1. Business Model of Islamic Banks: Opportunities and Risks   

* Managing Credit Risk for Islamic Bank,
* Managing Equity Investment Risk for Islamic Bank
* Designing ERM Framework for Credit Risk and Equity Investment Risk  "


This module explains credit and risk management for Islamic bank


Module 4. Applying ERM to Credit Risk and Equity Investment Risk

Post Test 

* Understanding Basel III Framework  
* IFSB Risk Management Standard
* ISO 31000 and the relevant to Islamic Bank
* ERM and Value Addition to Islamic Bank  "
* Method and Techniques Kanban Implementation
* Flow production system and One Piece Flow
* Optimize Lot Size  
* Reduce set up time  


This module explains the relevant of international standard, such as Basel III, IFSB, and ISO 31000 on Islamic Bank


Module 2. International Standards on Risk Management for Islamic Bank 

A group role-play or exercise (case study) where participants are asked to design ERM for the above-mentioned risk


* Managing Market Risk for Islamic Bank,
* Managing Liquidity Risk for Islamic Bank
* Managing Rate of Return Risk for Islamic Bank
* Designing ERM for Market Risk, Liquidity Risk, and Rate of Return Risk  "


This module explains Market Risk, Liquidity Risk, and Rate of Return Risk Management for Islamic Bank


Module 5. Applying ERM to Market Risk, Liquidity Risk, and Rate of Return Risk 

A group role play or exercise (case study) where participants are asked to design ERM for specific case study


* Managing Operational Risk for Islamic Bank
* Managing Sharia non-compliance risk
* Managing Fiduciary Risk
* Designing ERM for Operational Risk, Sharia non-compliance risk, and Fidicuary Risk  


This module explains an Operational Risk, Sharia Non Compliance Risk, and Fidicuary Risk Management for Islamic Bank


Module 6. Applying  ERM to Operational Risk, Sharia non-compliance & Fiduciary Risk

islamic banking industry has been developed and has high growth over the last three decades. Although this new approach to the banking business model has been regarded as having relatively resilient as compared to its conventional counterpart, Islamic banking actually owns more risks than conventional banking. Today’s Islamic bankers have to think strategically about how to manage the specific risks of Islamic banks to leverage their unique business model as they could do many activities that conventional banks cannot do. By Implementing enterprise risk management (ERM) the specific risks of Islamic banks can be better controlled, in order to generate better performance and to win the blue ocean market that conventional banks cannot involve in.

After completion of this program, participants will be better able to:
* Understand the unique characteristics of Islamic banks and the opportunties inherent in this business model  
* Identify specific risks of Islamic banks and how existing regulatory and risk management frameworks cannot deal with 
* Comprehend enterprise risk management knowledge and learn how it is suitable to manage specific risks in Islamic banking 
* Develop an enterprise risk management framework to identify, analysis, evaluate and treat specific risks in Islamic bank
* Set up an appropriate action plan for improvement and sustain business     "
