Sunday, December 10, 2017

Islamic finance in Europe (120)

Continuation
Therefore, having an end-to-end Shari’ah-compliant process is crucial with regard to mitigating operational risk.
This would include having systems that recognise the specificities of Islamic contracts.
That systems talent that:
-      understands
-      and executes:
o   Islamic contracts in the correct manner
o   and internal processes
that mitigate the risks associated with any potential non-compliance.
Legal risk
Legal risk can also be categorised as part of operational risk.
It refers to the potential loss.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)

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