A. Shariah Risk Governance

1. Develop, maintain, and implement the Shariah Risk Management Policy as an integral component of the overall Enterprise Risk Management policy of a Bank.

2. Develop, maintain, and implement the Shariah Risk Management Framework.

3. Ensure effective embedding of Shariah risk controls within policies, procedures, and operating manuals of Bank.

4. Facilitate periodic review and updates of the Shariah Risk Management Policy to reflect new products, regulations, or operational changes.

5. Liaise with the Shariah Board and Risk Management Committee of Board on matters relating to Shariah non-compliance risk exposures and mitigation strategies.

 

 B. Risk Identification & Assessment

1. Identify potential areas of Shariah non-compliance risks in existing and proposed products, contracts, and operational processes.

2. Conduct Shariah risk assessments for all new and existing product approvals, modifications, and special transactions.

3. Maintain a detailed Shariah risk register capturing key risk indicators, incidents, and mitigation measures.

 

 C. Risk Monitoring & Reporting

1. Develop and monitor Key Risk Indicators (KRIs) related to Shariah compliance Risk.

2. Conduct regular reviews and risk profiling of business units based on their Shariah compliance exposure.

3. Prepare periodic Shariah risk reports and present them to:

§ The Risk Management Committee of Board (RMC) — for governance oversight.

§ The Shariah Board — for advisory and guidance.

§ The Chief Risk Officer (CRO) — for administrative and coordination purposes.

 

 D. Coordination & Advisory

1. Coordinate closely with Shariah Compliance Department, Business Units, and Internal Audit to ensure identification and management of Shariah risk.

2. Act as a primary liaison between the Risk Management Department and the Shariah Board on matters of Shariah risk management.

3. Provide risk-based inputs during product development, contract structuring, and policy formulation.

4. Any other official assignment given by BOS RMC, Shariah Board & superior at the time.

 

E. Capacity Building & Awareness

1. Develop and deliver training sessions for staff on Shariah risk awareness and management.

Promote a strong Shariah risk culture within the bank through capacity building and periodic awareness campaigns.