Course Name Code Semester T+U Hours Credit ECTS
Risk Management In Islamic Finance IEF 623 0 3 + 0 3 6
Precondition Courses
Recommended Optional Courses
Course Language Turkish
Course Level Doctorate Degree
Course Type Optional
Course Coordinator Prof.Dr. MUSTAFA ÇALIŞIR
Course Lecturers
Course Assistants

Res. Asst. Mücahit Özdemir

Course Category
Course Objective

The aim of this course is to learn the risks faced by financial institutions and to examine the types of risk specific to Islamic finance in detail 

Course Content

Types of risk faced by financial institutions, Islamic finance-specific risk types, BASEL regulations, risk management methods

# Course Learning Outcomes Teaching Methods Assessment Methods
1 The concepts related to risk and its types in finance Lecture, Question-Answer, Discussion, Testing, Oral Exam, Homework,
2 The risk types specific the Islamic finance Lecture, Question-Answer, Discussion, Case Study, Self Study, Testing, Oral Exam, Homework,
3 The risk management methods and products in Islamic finance Lecture, Question-Answer, Discussion, Brain Storming, Case Study, Testing, Oral Exam, Homework,
Week Course Topics Preliminary Preparation
1 Risk concept and its classification Related part of the course materials
2 Types of risks financial institutions faced - 1 Related part of the course materials
3 Types of risks financial institutions faced - 2 Related part of the course materials
4 Regulations related to risk: BASEL Related part of the course materials
5 Risk concept in Islam Related part of the course materials
6 Types of general risks Islamic financial institutions faced Related part of the course materials
7 Mid-term exam week Related part of the course materials
8 Types of risks specific to Islamic finance - 1 Related part of the course materials
9 Types of risks specific to Islamic finance - 2 Related part of the course materials
10 Types of risks specific to Islamic finance - 3 Related part of the course materials
11 Types of risks specific to Islamic finance - 4 Related part of the course materials
12 Risk management methods in finance Related part of the course materials
13 Risk management methods in Islamic finance Related part of the course materials
14 Risk management products in Islamic finance Related part of the course materials
Resources
Course Notes
Course Resources

Ahmed, Habib (2011), “Risk Management Assessment Systems: An Application to Islamic Banks”, Islamic Economic Studies, 19 (1), 63-86.

Ahmed, Habib and Tariqullah Khan (2007), "Risk Management in Islamic Banking", in M. Kabir Hassan and Mervyn K. Lewis (Editors), Handbook on Islamic Banking, Edward Elgar Publishers, Cheltenham (2007), 144-158.

Ali, Salman Syed (2012), “State of Liquidity Management in Islamic Financial Institutions,” IRTI Working Paper Sereis WP# 1433-06, Islamic Research and Training Institute, Jeddah.
Al-Suwailem, Sami Ibrahim (2006), Hedging in Islamic Finance, Occasional Paper No. 10, Islamic Research and Training Institute, Islamic Development Bank Group, Jeddah. [http://www.irtipms.org/PubDetE.asp?pub=217].
Al-Tamimi, Hussein A. Hassan and Faris Mohammed Al-Mazrooei (2007), “Banks' risk management: a comparison study of UAE national and foreign banks”, Journal of Risk Finance, 8 (4), 394-409.
Archer, Simon and Rifaat Ahmed Abdel Karim (eds.) (2007), Islamic Finance: The Regulatory Challenge, John Wiley & Sons (Asia) Pte. Ltd., Singapore.
Ariffin, Noraini Mohd, Simon Archer and Riffat Ahmed Abdel Karim (2009), “Risks in Islamic Banks: Evidence from empirical research”, Journal of Banking Regulation, 10 (2), 153-163.
BCBS (2011), Basel III: A global regulatory framework for more resilient banks and banking systems, Basel Committee of Banking Supervision, http://www.bis.org/publ/bcbs189.pdf
BCBS (2013), Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools, Basel Committee of Banking Supervision, http://www.bis.org/publ/bcbs238.pdf

Cihak, Martin and Heiko Hesse (2010), “Islamic Banks and Financial Stability: An Empirical Analysis”, Journal of Financial Services Research, 38, 95-113.
DeLorenzo, Shaykh Yusuf Talal (2007), “Shari’ah Compliant Risk”, Chicago Journal of International Law, 7 (2), 397-408.
Djojosugito, Reza (2008), “Mitigating legal risk in Islamic banking operations”, Humanomics, 24 (2), 110-121.

Grais, Wafik and Matteo Pellegrini (2006c), “Corporate Governance and Shariah Compliance in Institutions Offering Islamic Financial Services”, World Bank Policy Research Working Paper 4054.
Greuning, Hennie Van and Zamir Iqbal (2008), Risk Analysis for Islamic Banks, The World Bank, Washington DC.
IFSB (Islamic Financial Services Board) (2005a), Guiding Principles Of Risk Management for Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services, Islamic Financial Services Board, http://www.ifsb.org/standard/ifsb1.pdf
IFSB (2005b), Capital Adequacy Standard For Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services, Islamic Financial Services Board, http://www.ifsb.org/standard/ifsb2.pdf
IFSB (2009), Guiding Principles on Sharîah Governance Systems for Institutions offering Islamic Financial Services, Kuala Lumpur: Islamic Financial Services Board.
IIRA (2006), Methodology for Shari’a Quality Rating, Islamic International Rating Agency, Bahrain.

ISRA (2011), Islamic Financial System: Principles and Operations, International Shari’ah Research Academy for Islamic Finance, Kuala Lumpur.
Khan, Tariqullah and Habib Ahmed (2002), Risk Management: An Analysis of Issues in Islamic Financial Industry, Islamic Research and Training Institute, Islamic Development Bank, Jeddah,
Salem, Rania Abdelfattah (2013), Risk Management for Islamic Banks, Edinburgh University Press, Edinburgh.
Sairally, Beebee Salma, Marjan Mohammad and Madaa Munjid Mustafa (2013), “Capital Adequacy Requirements under Basel III: A Shari’ah Perspective”, ISRA International Journal of Islamic Finance, 5 (1), 183-189.
Siddiqi, Anjum (2008), “Financial Contracts, risk and performance of Islamic banking”, Managerial Finance, 34 (10), 680-694.
Vento, Gianfranco A. and Pasquale La Ganga (2009), “Bank Liquidity Risk Management and Supervision: Which Lessons fron Recent Market Turmoil, Journal of Money, Investment and Banking, 10, 78-125

Order Program Outcomes Level of Contribution
1 2 3 4 5
1 Having knowledge about Islamic moral understanding at academic level X
2 Having sufficient knowledge about basic concepts and methodology of Islamic law X
3 Having enough knowledge about Islamic commercial law X
4 Having enough knowledge and skills about economics and finance X
5 Ability to follow current developments in the global economy in the field of economics and finance X
6 To be able to make interdisciplinary academic studies between basic Islamic sciences and economics-finance sciences X
7 Be able to develop unique mechanisms and products in accordance with Islamic principles in the financial system X
8 New developments in economics and finance, explanation and interpretation from the perspective of Islamic morality and law X
9 To comply with ethical rules in the fields in which they are employed and in economic-commercial activities X
10 Ability to give academic work on at least one foreign language X
11 Having an understanding of the rights and benefits of all stakeholders of institutions X
12 Having the ability to use the necessary information technologies X
Evaluation System
Semester Studies Contribution Rate
1. Ödev 20
Total 20
1. Yıl İçinin Başarıya 50
1. Final 50
Total 100
ECTS - Workload Activity Quantity Time (Hours) Total Workload (Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 3 48
Assignment 1 4 4
Performance Task (Seminar) 1 20 20
Final examination 1 30 30
Total Workload 150
Total Workload / 25 (Hours) 6
dersAKTSKredisi 6