Risk management in Islamic banks

The use of financial services and products that comply with the Shariah principles cause special issues for supervision and risk management. Efficient risk management in Islamic banking has assumed particular importance as they try to cope with the challenges of globalization. This paper highlights the special and general risks surrounding Islamic banking. It also explains the key challenges ahead to promote further development of Islamic banking in the global financial system. As The developing of managing risks tool becomes very essential especially in Islamic banking as most of the products is depending on PLS principle , so identifying and measuring each type of risk is highly important and critical in any Islamic financial based system . Another approach on the recommendation is showing how the Islamic banking can be an ideal alternative than the current conventional banking system . emphasizing the role of Islamic banking on hedging against the economic crisis and the how it can be an add value to the nationals economics in terms of making the society more productive .