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Risk management process: Profiling of islamic microfinance providers

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  • Rozzani, Nabilah
  • Mohamed, Intan Salwani
  • Syed Yusuf, Sharifah Norzehan

Abstract

This study intends to compare and contrast the risks faced by two types of Islamic microfinance providers in Malaysia, which are non-governmental organization and commercial financial institution. Using comparative case study method, interview sessions were conducted on staffs of two Islamic microfinance providers. With respect to their disbursement and repayment system, it was found that both Institution A and Institution B are both exposed to Shariah risk, operational risk and credit risk. In addition to that, as Institution B is an established and reputable financial institution in Malaysia, it is also exposed to reputational risk.

Suggested Citation

  • Rozzani, Nabilah & Mohamed, Intan Salwani & Syed Yusuf, Sharifah Norzehan, 2017. "Risk management process: Profiling of islamic microfinance providers," Research in International Business and Finance, Elsevier, vol. 41(C), pages 20-27.
    • Handle: RePEc:eee:riibaf:v:41:y:2017:i:c:p:20-27
    DOI: 10.1016/j.ribaf.2017.04.009
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