Growth in Islamic finance spurs need for new risk management

They will jointly develop a first-of-its-kind Certificate in Risk Management for Islamic Financial Institutions due to be launched in late 2008.

The Banque du Liban possesses unsurpassed expertise in Islamic financial principles, strong relationships with the central banking community throughout the world, and a strong interest in seeing the formal development of standardized approaches to Islamic finance.

The Banque du Liban recognized this need to develop risk management standards for Islamic financial institutions in order to promote the growth of Islamic finance and to serve people around the world who desire to invest or transact in Islamic finance products.

The expertise on Islamic finance from the Banque du Liban combined with GARP's proficiency in creating globally accepted standards on risk management methodologies, such as their globally recognized FRM program, will result in a benchmark approach to assessing risk around Sharia'a-compliant financial products.

"There will be much input from experts around the world to make sure we get this right," said Chris Donohue, PhD, Head of GARP's Research Center.