<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>This research aims to explore the role of the board in corporate governance (CG) and risk management within the context of Islamic banking. Given the global reach of financial institutions, it is important to compare and evaluate the unique position of Shari’ah committees or Shari’ah Supervisory Board (SSB) in addressing the unique risks of Islamic banks. Using a comparative analysis, this study evaluated risk management guidelines in the CG codes of the United Kingdom, Germany, Saudi Arabia, and Malaysia. It found that board were ultimately responsible for risk management, regardless of the governance structure, and Shari’ah-related risks fell under the board’s purview. An innovative blend of Western CG frameworks and Islamic principles enhanced governance robustness through the strategic collaboration between board and SSBs.</p>
</abstract>

This research aims to explore the role of the board in corporate governance (CG) and risk management within the context of Islamic banking. Given the global reach of financial institutions, it is important to compare and evaluate the unique position of Shari’ah committees or Shari’ah Supervisory Board (SSB) in addressing the unique risks of Islamic banks. Using a comparative analysis, this study evaluated risk management guidelines in the CG codes of the United Kingdom, Germany, Saudi Arabia, and Malaysia. It found that board were ultimately responsible for risk management, regardless of the governance structure, and Shari’ah-related risks fell under the board’s purview. An innovative blend of Western CG frameworks and Islamic principles enhanced governance robustness through the strategic collaboration between board and SSBs.

Corporate governance and risk management: An evaluation of board responsibilities in western and Islamic banks

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

This research aims to explore the role of the board in corporate governance (CG) and risk management within the context of Islamic banking. Given the global...

Corporate governance and risk management: An evaluation of board responsibilities in western and Islamic banks

Online veröffentlicht: 10. Apr. 2024

Seitenbereich: 125 - 152

Eingereicht: 19. Okt. 2023

Akzeptiert: 15. März 2024

DOI: https://doi.org/10.18559/ebr.2024.1.1004

Schlüsselwörter
corporate governance, Islamic banking, risk management, Shari’ah, governance codes

© 2024 Bchr Alatassi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Corporate governance and risk management: An evaluation of board responsibilities in western and Islamic banks

Online veröffentlicht: 10. Apr. 2024

Seitenbereich: 125 - 152

Eingereicht: 19. Okt. 2023

Akzeptiert: 15. März 2024

DOI: https://doi.org/10.18559/ebr.2024.1.1004

Schlüsselwörtercorporate governance, Islamic banking, risk management, Shari’ah, governance codes

© 2024 Bchr Alatassi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Schlüsselwörter
corporate governance, Islamic banking, risk management, Shari’ah, governance codes