Risk Management in
Islamic Financial Instruments
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2 Does the bank confirm a guarantor’s intention to
guarantee loans with a signed document?
3 If loans are international, does the bank regularly
review country ratings?
4 Does the bank monitor the borrower’s business
performance after loan extension?
International AAOIFI Other
5 Does the accounting standard used by the bank comply
with the following standards?
Daily Weekly Monthly
6 Positions and Profits/Losses are assessed?
Part VI: Presence of Internal Control
Adequate Internal Controls
Yes No
1 Does the bank have in place an internal control system capable of swiftly dealing with
newly recognized risks arising from changes in environment, etc.?
2 Is there a separation of duties between those who generate risks and those who manage
and control risks?
3 Does the bank have countermeasures (contingency plans) against disasters and accidents?
4 Is the Internal Auditor responsible to review and verify the risk management systems,
guidelines, and risk reports?
5 Does the bank have backups of software and data files?
Part VII: Other Important Issues
Other Issues related to Islamic Financial Institutions
Yes No
1 Is your bank actively engaged in research to develop Islamic compatible Risk Management