The principle of risk management: Sharia perspectives

Research output: Contribution to journalArticle

Abstract

Risk management has started centuries ago. Till today, financial risk management is vital for businesses, industrial and financial institutions to continue to survive. Risk management is very important and is strongly recommended in Islam. However, risk management cannot be dissociated with derivatives instrument because derivatives are basically designed to manage risk. Even though the derivatives instrument is needed to manage risk it is also infamous for speculative purposes. In fact, derivatives also have sharia issues such as injustice, non-transparency, riba (usury) element, gharar and gambling. Hence, the objective of this study is to discuss the necessary basic principles of muamalat that should be present in the management of risk in order to fully adhere to the principle of sharia.

Original languageEnglish
Pages (from-to)3335-3343
Number of pages9
JournalJournal of Applied Sciences Research
Volume8
Issue number7
Publication statusPublished - Jul 2012

Fingerprint

Derivatives
Risk management
Financial institutions
Financial risk management
Islam
Gambling
Usury

Keywords

  • Islam
  • Risk management
  • Sharia

ASJC Scopus subject areas

  • General

Cite this

The principle of risk management : Sharia perspectives. / Ahmad, Azlin Alisa; Yaacob, Salmy Edawati.

In: Journal of Applied Sciences Research, Vol. 8, No. 7, 07.2012, p. 3335-3343.

Research output: Contribution to journalArticle

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