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Risk Management in

Islamic Financial Instruments

185

Mark-up Risk

5

4

3

2

1

Liquidity Risk

5

4

3

2

1

Operational Risk

5

4

3

2

1

4

Ijtisna

Credit Risk

5

4

3

2

1

Mark-up Risk

5

4

3

2

1

Liquidity Risk

5

4

3

2

1

Operational Risk

5

4

3

2

1

5

Ijarah

Credit Risk

5

4

3

2

1

Mark-up Risk

5

4

3

2

1

Liquidity Risk

5

4

3

2

1

Operational Risk

5

4

3

2

1

6

Salam

Credit Risk

5

4

3

2

1

Mark-up Risk

5

4

3

2

1

Liquidity Risk

5

4

3

2

1

Operational Risk

5

4

3

2

1

7

Diminishing Musharakah

Credit Risk

5

4

3

2

1

Mark-up Risk

5

4

3

2

1

Liquidity Risk

5

4

3

2

1

Operational Risk

5

4

3

2

1

Risk Perception-Additional Issues regarding Risks faced by Islamic Financial Institutions

1

Lack of understanding of risks involved in Islamic modes of financing

5

4

3

2

1