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RISK MANAGEMENT STRATEGIES IN THE ISLAMIC ENVIRONMENT
| Detail | |
|---|---|
| Author | NEVI DANILA (Tim: Ketua) |
| ID | 202.710.123 |
| Published Date | 18-10-2010 |
Abstract
Culture and religion can significantly impact the way that business is conducted in multinational enterprises. In the conduct of business, companies generally employ various strategies to minimize and flatten their business and financial risk. However, many of these traditional risk management strategies are believed to be in violation of various religious principles and are therefore not acceptable in certain societies. In this study, we identify and discuss traditional risk management strategies and their applicability in an Islamic business environment. Since many Muslims believe that the traditional risk management strategies are in violation of their principles, it is necessary to identify alternatives risk management strategies. To address this matter, we identify and discuss alternative risk management strategies that can be utilized by businesses in place of traditional derivatives and interest. These solutions may be effectively employed to minimize or flatten a company’s business and financial risk while at the same time still remaining true to the Islamic rules and customs.