Year: 2024
Type: article
Abstract: Islamic law (Shari’ah) recognises the concept of risk management although Shari’ah jurists do not write in detail its idea. Al-Qur’an and the Sunnah of Prophet Muhammad (s.a.w) provide evidence on the validity of risk management. Risk management practice is determined based on the Shari’ah rulings of obligatory (wajib), recommended (mandub), permissible (mubah), reprehensible (makruh), and prohibited (haram). Risk management is also related to the practice of objectives of the Shari’ah (maqasid Shari’ah) expounded by Shari’ah jurists, especially al-Ghazali (d.505H). The essentials (daruriyyat), needs (hajiyat), and embellishment (tahsiniyyat) form part of the maqasid that protects faith, life, intellect, lineage, and wealth. This protection is part of risk management under the Shari’ah. Universiti Teknologi MARA (UiTM) also practises risk management as a policy. The university, as a statutory body, has such a policy in following a similar policy practised by the Federal Government. The Risk Management Centre monitors on behalf of the university, the practice of risk management by its staff. The majority of the staff and students are Muslims. The main concern is the relationship of the university’s risk management with the Shari’ah. Risk management of the university is in line with the Shari’ah. The strategic, financial, reputational, legal, operational, and project risks out of the university fall under the maqasid that protects faith, life, intellect, lineage, and wealth. It is therefore important to recognise the role of the Shari’ah in guiding the university in achieving its vision and mission.
Author: AKBAR KAMARUDIN @ ABDUL SHUKOR
Institutions: Universiti Teknologi MARA System, Universiti Teknologi MARA
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408000720