Risk management in Islamic financial instruments

Authors

Abstract

Islamic financial instruments have recently been used as one of the most important types of securities for financing and Islamic investing Islamic financial instruments are considered as the most influential factors in the Islamic economic system so that they are referred to as a suitable alternative for cash and types of investments in the economic system Today financial instruments in Islamic economics are considered as one of the most successful mechanisms in the financial industry and have dramatically increased in the global financial system so that they are considered as one of the most fundamental tools for developing financial knowledge in the world financial perspectives The method of this article is descriptive analytic and after discussing the mechanisms of Islamic economics Islamic financial instruments and their development in different countries of the world introduces a variety of risks to Islamic securities and finally focuses its attention on the risk management of Islamic financial instruments The main objective of this paper is to explain and introduce the leading risks of Islamic financial instruments and to introduce the appropriate mechanism for risk management of such securities and finally the relationship between optimal financing and Islamic investment approach The present study shows that Islamic financial instruments like all financial assets face a variety of market risks and the specific risks of the issuer of these securities; therefore common risk instruments can be used to secure these securities