Risk Management Practices of Islamic Financial Institutions in the Southernmost Provinces of Thailand
Keywords:Risk Management Practice, Islamic Financial Institution, Southernmost Thailand, Islamic Banks, Islamic Cooperative
Risk management practices (RMPs) of Islamic financial institutions (IFIs) is important especially in southernmost of Thailand. IFIs are small in size and scatter which make them facing different types of risks. This study aims to assess the degree to which IFIs in the southernmost provinces of Thailand use risk management practices and techniques in dealing with different types of risk. Eight well-established IFIs in the southernmost provinces of Thailand were selected. Fifteen questionnaires were sent to the institutions for having senior staffs to report on their RMPs in six aspects: understanding risk and risk management (URM), risk assessment and analysis (RAA), risk identification (RI), risk monitoring (RM), credit risk analysis (CRA) and risk management practices (RMPs). Data were collected from 120 staffs. The findings show that the most significant aspects of RMPs of IFIs in this area are RI, RM and CRA. Other two aspects, URM and RAA have no relationship with RMPs. It implies that the staffs’ attitude among IFIs on these aspects are still scatter.
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