A study on risk exposure in Islamic bank: a case study of Bank Islam Malaysia Berhad (BIMB) / Nadia Ahmad Najib

The growth and changes in the global financial markets pose various risks to the financial pectoral over the world. Risk cannot be avoided as it is part and parcel of its operations. Banking institutions are likewise exposed to risks. As conventional banks have to face three major risks; i) credit r...

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Bibliographic Details
Main Author: Ahmad Najib, Nadia
Format: Student Project
Language:English
Published: Faculty of Business and Management 2010
Subjects:
Online Access:http://ir.uitm.edu.my/id/eprint/27380/1/27380.pdf
http://ir.uitm.edu.my/id/eprint/27380/
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Institution: Universiti Teknologi Mara
Language: English
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Summary:The growth and changes in the global financial markets pose various risks to the financial pectoral over the world. Risk cannot be avoided as it is part and parcel of its operations. Banking institutions are likewise exposed to risks. As conventional banks have to face three major risks; i) credit risk, ii) market risk, iii) operational risk, similarly Islamic banks also face the same. The perception that Islamic banks are risk free is not correct and can be an understatement. This paper explores the risk involved in Islamic banks and risk management practices by the Islamic banks. The focus of this paper is on risk and return in Bank Islam Malaysia Berhad (BIMB). The study examines the risk level in BIMB by using two approach; Financial Statement Analysis and Stock Analysis. The findings of this paper will assist Islamic banks as it will give a clear understanding about various types of risk in general and more particularly credit risk and market risk.