Challenges of risk management faced by islamic banking

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Due to the immense failure of banking institutions in response to the global financial crisis has witnessed an increase of development on risk management. However Islamic banking is much less affected by the destruction for a variety of reasons probably because it is still a very small part of the global system and has yet to develop enough connectivity to catch the cold. The current wave of financial liberalization and globalization naturally stimulates the question of risk management in Islamic banking.

a. As outlined above, critically discuss the issues and challenges of risk management faced by Islamic banking.

b. Elaborate the mitigating ways that are suitable to overcome the risk in Islamic banking.

Reference no: EM133069485

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