2018

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Browsing 2018 by Author "Uzair Nawaz"

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    Risk Governance in Islamic Banks and its influence on Risk Management Practices
    (UMT.Lahore, 2018-06-05) Uzair Nawaz
    The recent study provides comprehensive insights on three main dimensions; risk governance by involving board (RG), risk management process and the risk management practices (RMPs) in the Islamic banks of Pakistan. The data is collected from eight full fledge Islamic banks through a questionnaire survey following the methodology of Al-Tamimi & Al-Mazroui (2007), Hassan (2009), and Abu Hussain & Al-Ajmi (2012) but adding a new section. The study employs the multiple regression models to determine if the hypothesized explanatory variables influence the likelihood of Pakistan’s Islamic banks to develop an increased degree of risk management practices (RMPs). The findings identify a strong relationship between risk management process and the risk management practices in case of Islamic banks operating in Pakistan. It ensures that the risk management process of Islamic banks in Pakistan comply with Shariah based rules and principles and clearly implement the principles of IFSB, Basel II Accords. However, risk governance positively impacts both risk management process as well as risk management practices, only if board or audit is not involved. There might have some deficiency in targeting the prospects for questionnaire survey. Therefore, further research should target the senior executives or supervisory committees for identifying the involvement of board in risk management area.