The Bahrain Institute of Banking and Finance (BIBF) and the Islamic Development Bank Institute (IsDBI) organised a two-day virtual training programme. It sought to address the specific risk management requirements of Islamic financial institutions.
The programme, ‘Risk Management and Stress Testing for Islamic Financial Institutions,’ is intended to equip participants with industry-relevant knowledge. Its main objective is to ensure best practices in risk management within the Islamic finance industry.
“We are delighted to have collaborated with the Islamic Development Bank Institute to deliver this timely and valuable training program,” said BIBF Chief Executive Officer (CEO) Dr Ahmed Al Shaikh.
The training encompassed various critical topics to provide comprehensive knowledge of risk management in Islamic finance. This included the fundamentals of risk management specific to Islamic finance, ensuring participants understood the basics.
Regulatory requirements and guidelines for risk management were also covered, stressing compliance with industry standards.
Participants also learned to develop robust stress testing frameworks for Islamic banks, assessing financial stability under adverse conditions. The training also tackled integrating shariah principles into risk management practices, which ensures financial activities are aligned with Islamic laws.
Apart from that, the training touched on liquidity risk management and capital adequacy, which are vital for maintaining the financial health of Islamic banks. One topic reviewed the emerging risks for Islamic financial institutions and analysed how they affect institutions following Islamic Financial Services Board (ISFB) standards.
IsDBI Senior Islamic Finance Specialist Dr Abozer Mohamed served as the facilitator. He led the training programme in a highly interactive format, including case studies, presentations, and group discussions. This format allowed participants to share their insights and recommendations, fostering collaborative learning.
Not to mention, the programme’s virtual format enabled participants from the Middle East and other regions to join. This further increased the diversity of perspectives and insights shared during the sessions, enriching the learning experience.
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