Question
Case Study Presentation-3
This is an individual presentation based on the contents of Unit-4. LO1, LO2, LO4, LO5, LO7.
You are required to prepare a presentation highlighting risk management techniques used in Islamic Financial Institutions. You can choose any Islamic bank of your choice and evaluate the following:
- Types of risks the Islamic financial institution is involved in
- Structure of identified risks across Islamic products
- Risk management system in the bank
- Risk avoidance and mitigation approach in the bank
- Risk transfer and insurance
Solution:
Slide 1: Introduction of Dubai Islamic Bank
•Dubai Islamic Bank (DIB) founded in 1975, Sharia-compliant products and services
•DIB largest Islamic bank in UAE based on total assets and Net Operating Revenue of AED 4,036
•Bank offers retail, corporate, private, consumer, and investment banking; and contracting and real estate finance •Operates 22 branches, employing 6894 staff
•The most recent project has been the real estate developments in UAE totaling USD 544.5 million
• The company total income is AED 5.6 Billion upto by 15% with Group Net Profit up by 14% (Dubai Islamic Bank, 2018)
Slide 2: Dubai Islamic Banks Risks
•Group measures risks using conventional qualitative methods for credit, market, liquidity and operational risks •Monitoring and controlling risks is primarily performed based on limits established by the Board of Directors and management
•Information compiled from all the businesses is examined and processed in order to analyse the risk profile and identify early risks
•The market risks are managed on the basis of predetermined asset allocation across various asset categories
•DIB conducts continuous appraisal of market conditions for movement and expectation of foreign currencies rate, bench mark profit rates and equity houses
Slide 3: Types of Risks in Dubai Islamic Banks Risks
Please contact us to receive guidance, support and tutorial services on all slides in this assessment based on your expectations level and company of interest
Email address: rankedtutorials@gmail.com