This session discuss and highlight on the importance of Shariah audit and review in Islamic banking whereby it points out the framework, development and structure regarding the Shariah audit and review in the Islamic banking operation. Trainer will also discuss on the importance of Shariah compliance as well as implication of Shariah non-compliance at the perspective of financial and non-financial as Shariah review is an examination of the extent of an Islamic financial institution’s compliance in all activities. It will further discuss the elements required in fulfilling Shariah review and audit reporting process. It will highlight issues and challenges of as well as how to handle the issue as per the guidelines requirements.

Learning Outcomes:

  • Provide an overview of Shariah compliance review framework for Islamic financial institution;
  • Introduce Shariah audit and governance techniques, strategies and methods;
  • Mitigate issues in relation to Shariah Audit;
  • Examine risks exposures and Shariah compliance audit;
  • Identify the scope, scale and procedures that govern the Shariah compliance review process; and
  • Review what are the issues and challenges of the implementation and development of Shariah Review and Audit in Islamic financial institutions

This session provides the big picture of Shariah governance and Shariah risk management framework. It covers the impacts of Shariah non-compliance incidents on the reputational and financial aspect of Islamic banks. It will further discuss the roles of monitoring the Shariah non-compliance incidents in terms of rectification and recurrence prevention.

Learning Outcomes:

  • Mitigate any possibilities of Shariah non-compliance event in the Islamic financial institutions;
  • Comprehend the processes of Shariah risk management and explore experience in implementing the processes which include identifying and assessing Shariah risks;
  • Propose possible questions for each of Shariah risk management processes;
  • Appreciate the importance of an effective risk governance and Shariah governance framework;
  • Develop a sound and robust risk management framework to manage Shariah non-compliance risk; and
  • Leverage on the smart alliance of Risk Management, Compliance and Internal Audit.

This session introduces the importance of Shariah risk management in order to attain the business goals without depriving Shariah compliance. It will also discuss the common risk occurs within the conventional and Islamic banks and highlight the management of Shariah non-compliance incidents from the perspective of Shariah and operational risk management

Learning Outcomes:

  • Introduce the importance of Shariah risk management in order to attain the business goals without depriving Shariah compliance;
  • Practically familiarize processes and enablers of Shariah risk management; 
  • Understand the management of Shariah non-compliance incidents from the perspective of Shariah and operational risk management; and
  • Identify common Shariah non-compliance risks in Islamic banks.

Ensuring Shari’ah compliant aspect is imperative for Islamic financial institutions (IFIs) to maintain the confidence level of stakeholders and public at large. Inadequate attention to the whole process of Shariah compliant aspect will trigger negative repercussion to IFIs, such as massive withdrawal and financial loss. Any income derived from Shariah non-compliant incidences cannot be recognized as profit of IFIs. Hence, understanding Shariah non-compliant risk management is essential to ensure the beginning-to-end Shariah compliant aspect in the day-to-day IFIs operations. The 2 days course is designed to provide the participants with a comprehensive and practical understanding on managing Shariah non-compliant risk in IFIs.

Learning Outcomes:

  • Basic concept of Islamic banking
  • Shariah compliance as the foundation of Islamic bank
  • Shariah governance framework & requirements on Shariah non-compliance risk management
  • Risk management in Islamic banking
  • Shariah non-compliance risk management framework
  • Simulation workshop:
    • Shariah non-compliance (SNC), where are you?
    • Managing Shariah non-compliance event

Batch 1 - 9th & 10th December 2015 - Intercontinental Hotel 
Batch 2 -  8th & 9th August 2016 - PNB Darby Park

Batch 3 -  7th & 8th November 2016 - PNB Darby Park


  1. Datuk Dr Mohd Daud Bakar
  2. En Mohd Zikri Mohd Shairy

Learning Outcomes:

  1. Observe the development of Shariah risk management in Malaysia after 5 years implementation of BNM SGF 
  2. Highlight the key components of Shariah risk management in Islamic financial institutions.
  3. Discuss issues and challenges in implementing Shariah risk management