ڈاکٹر محمد مشتاق احمد /ڈاکٹڑ جاوید خان
Risk is defined as uncertain events that could damage the performance or productivity of a person or institution. Due to inseparability of risk from the life of human being, different methods have been applied to mitigate the effects of risk from day one. With the passage of time, the subject of risk management and its techniques has evolved and presently different methods are being used to manage risks. Some techniques contain Riba, Gharar, and other elements prohibited by sharia.
In this study, Risk, different types of risk, risk management techniques in financial market and risk for Islamic financial institutions is conversed. Further, the roots and examples of risk and its mitigating techniques are discussed in the light of Islamic tradition. The present day risk mitigating techniques in vogue in the industry is also examined from sharia point of view and sharia framework of minimum requirement for risk management methodology based on the principles of Islamic business law is presented. At the end, recommendations regarding the islamization of present practices of risk management techniques are presented