ICM304-Risk Management of Islamic Financial Institutions

Module Provider: ICMA Centre
Number of credits: 10 [5 ECTS credits]
Terms in which taught: Summer term module
Non-modular pre-requisites:
Modules excluded:
Current from: 2018/9

Module Convenor: Dr Mohd Pisal Zainal

Email: m.p.zainal@reading.edu.my

Type of module:

Summary module description:

The course is designed to provide students with all aspects of risk to which Islamic financial institutions (IFIs) are exposed to. The study will focus on the fundamentals in identifying, measuring and mitigating risks within a banking paradigm. Students will be exposed to tools for controlling and managing inherent and residual risks. It also highlights the principles of Islamic finance and risk management in Islamic financial contracts besides discussing on Shariah-related issues that may exist in IFIs. Other topics discussed will include BASEL guidelines and IFSB standards and issues and challenges faced by IFIs.

This module is delivered at University of Reading Malaysia only. 


This course is aim to equip students with the fundamentals of risk management in finance. Special emphasis will be accorded towards risk management in Islamic financial institutions. In addition, knowledge on risk issues both at macro and micro levels such as risk philosophy, policy, process, framework, guidelines, strategies and regulatory requirements will also be disseminated to students, complete with quantitative tools to measure various types of financial risk, operational risk and capital adequacy. Shariah risk and fiduciary risk that are peculiar to Islamic financial institutions will also be emphasized. 

Assessable learning outcomes:

At the end of the course, students are expected to be able to: 


– Describe and evaluate the existence of risks in banking and finance and the concept of risk from the Islamic perspectives. 

- Distinguish the different types of risk and be familiarised with the risk management process, and the regulatory requirements and governance.  

- Apply the quantitative tools and techniques in identifying and measuring the various types of risk.  

Additional outcomes:

  • Analytical thinking, critical thinking, problem solving skills and working in team as well as presentation skills. 

Outline content:

This module covers the fundamentals of risk and their management. In addition, the current risk environment, risk issues, frameworks, guidelines, standards and strategies will also be discussed. 

Brief description of teaching and learning methods:

• Two-hour lectures combined with two-hour tutorials 

• Group working for assignment and group presentation

Contact hours:
  Autumn Spring Summer
Lectures 22
Tutorials 20 4
Guided independent study 100 54
Total hours by term 142.00 58.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 50
Written assignment including essay 40
Oral assessment and presentation 10

Summative assessment- Examinations:


Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:

The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy. 

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;

  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

    The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf

    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A weighted average of 50%

Reassessment arrangements:

To re-sit the examination, if the weighted average is below 50%.

Additional Costs (specified where applicable):

1) Required text books:

2) Specialist equipment or materials:

3) Specialist clothing, footwear or headgear:

4) Printing and binding:

5) Computers and devices with a particular specification:

6) Travel, accommodation and subsistence:

Last updated: 21 September 2018


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