RISK MANAGEMENT IN ISLAMIC FINANCIAL INSTITUTIONS NEGARA BRUNEI DARUSSALAM AN ANALYSIS CASE STUDY

Abstract

Islamic Financial Institutions is emerging as a rapidly growing part of the financial sector in the Islamic and recently in non-Islamic countries. One of the major aspects that should be taken into consideration in dealing with Islamic finance is risk management. Islamic Financials is a risky business and several risk factors have been identified as critical to ensure that the Islamic Financial Institutions position remain intact amid the intense competition in the industry. The survival and success of a financial organization depends critically on the efficiency of managing these risks. This research aims to identify the types of risk and to know risk management practices in Islamic Financial Institutions in Brunei Darussalam. In order to explore and explain the topic effectively, a mixed-method approach was adopted. As part of the quantitative and qualitative research strategy, a survey questionnaire and in-depth interviews were used with Islamic Financial Institutions in Brunei Darussalam. The findings in this study interestingly reveal that there is shed recommendation on the current risk management in Islamic Financial Institutions Negara Brunei Darussalam Furthermore by assessing their current risk management, the study hopes to contribute in terms of recommendation strategy to strengthen and knowing the risk management of the Islamic Financial Institutions so as to increase the overall competitiveness in the Islamic Financial Industry.