Islamic Treasury & Risk Management Products - 10 Days

This DIXONTECH 10-day course delivers an advanced understanding of Islamic treasury management and risk products, emphasizing liquidity, investment, and risk control under Shariah principles. It focuses on practical tools for treasury operations, financial instruments, and hedging techniques within Islamic frameworks. Participants will gain insight into liquidity management, Sukuk structuring, risk mitigation instruments, and Islamic derivatives, aligning global practices with ethical and regulatory compliance.

TRAINING TOPICS

• Islamic treasury operations and money markets
• Liquidity management and Shariah compliant funding instruments
• Risk identification, assessment, and mitigation techniques
• Islamic hedging tools and derivatives under Shariah
• Capital markets, Sukuk, and structured Islamic products
• Regulatory frameworks, compliance, and governance

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO

• Manage Islamic treasury portfolios efficiently
• Apply Shariah compliant liquidity management tools
• Identify and mitigate treasury and market risks
• Structure Sukuk and Islamic investment instruments
• Utilize Islamic derivatives within compliance boundaries
• Evaluate risk return profiles under Islamic standards
• Align treasury operations with ethical governance principles

TRAINING IS TAILORED TO

•   Treasury and risk management professionals
•   Islamic finance and banking officers
•   Investment and liquidity managers
•   Shariah compliance and audit specialists
•   Regulators and central bank officers
•   Financial controllers and analysts

TRAINING METHODOLOGY

The program combines interactive lectures, real life simulations, treasury product analysis, and case studies. Participants will engage in practical exercises on Islamic money market operations, liquidity management, Sukuk structuring, and hedging strategies, ensuring both conceptual understanding and hands on application.

DAY 1

FOUNDATIONS OF ISLAMIC TREASURY MANAGEMENT

•   Overview of Islamic treasury operations and objectives
•   Role of treasury in Islamic financial institutions
•   Treasury organization and governance framework
•   Shariah principles guiding treasury functions
•   Key differences between Islamic and conventional treasury
•   Importance of liquidity and risk management
•   Case study: treasury function in an Islamic bank

DAY 2

ISLAMIC MONEY MARKETS AND LIQUIDITY OPERATIONS

•   Overview of Islamic interbank money market systems
•   Wakala, Mudarabah, and commodity Murabaha structures
•   Short term liquidity instruments and placements
•   Islamic certificates of deposit and investment accounts
•   Role of Islamic money market funds
•   Central bank liquidity tools for Islamic finance
•   Simulation: executing short term Islamic money market transactions

DAY 3

LIQUIDITY MANAGEMENT TOOLS AND STRATEGIES

•   Shariah compliant liquidity management frameworks
•   Intraday and overnight liquidity management
•   Cross border liquidity operations in Islamic banks
•   Use of Sukuk for liquidity management
•   Integration with Basel III and IFSB liquidity standards
•   Case study: liquidity stress testing in Islamic institutions
•   Workshop: building a liquidity management dashboard

DAY 4

RISK MANAGEMENT IN ISLAMIC FINANCIAL INSTITUTIONS

•   Nature and types of risks in Islamic finance
•   Credit, market, operational, and Shariah risks
•   Risk appetite and tolerance in Islamic banks
•   Enterprise risk management frameworks (ERM)
•   Risk culture and internal control systems
•   Risk data aggregation and governance principles
•   Case analysis: risk mapping in Islamic financial institutions

DAY 5

SHARIAH COMPLIANT INVESTMENT AND FUNDING PRODUCTS

•   Islamic investment account structures (Mudarabah/Wakala)
•   Asset backed and asset based investment products
•   Structuring interbank placements under Shariah rules
•   Sukuk investment strategies and portfolio diversification
•   Funding strategies through Islamic capital markets
•   Role of AAOIFI and IFSB in investment governance
•   Practical exercise: structuring a Shariah compliant funding deal

DAY 6

SUKUK STRUCTURING AND CAPITAL MARKETS

•   Definition and types of Sukuk: Ijarah, Murabaha, Mudarabah, Musharakah
•   Legal and Shariah aspects of Sukuk issuance
•   Sukuk life cycle: origination, issuance, and redemption
•   Sukuk secondary market and trading mechanisms
•   Comparative analysis of global Sukuk structures
•   Case study: analyzing a sovereign Sukuk issue
•   Workshop: designing a Sukuk financing solution

DAY 7

ISLAMIC DERIVATIVES AND HEDGING TOOLS

•   Concept of risk transfer vs. risk sharing in Shariah
•   Introduction to Islamic derivatives and their legitimacy debate
•   Tahawwut (hedging) principles under Shariah standards
•   Profit rate swaps (PRS) and currency swaps structures
•   Wa’ad based and Murabaha based hedging instruments
•   Role of ISDA/IIFM in standardizing Islamic derivatives
•   Simulation: building an Islamic hedging strategy

DAY 8

MARKET AND OPERATIONAL RISK MANAGEMENT PRACTICES

•   Identifying and measuring market risk in Islamic finance
•   Operational risk sources and control mechanisms
•   Stress testing and scenario analysis in Islamic banks
•   Value at Risk (VaR) and Shariah compliant approaches
•   Operational risk capital charge and risk based pricing
•   Integrating risk frameworks with Islamic treasury policies
•   Case study: operational risk event in an Islamic bank

DAY 9

TREASURY ACCOUNTING, REPORTING, AND PERFORMANCE ANALYSIS

•   Accounting for Islamic treasury transactions (AAOIFI standards)
•   Profit distribution and income recognition methods
•   Treasury reporting and performance dashboards
•   Key performance indicators for treasury functions
•   Internal audit and Shariah audit in treasury operations
•   Financial statement impact of treasury products
•   Workshop: developing a treasury performance report

DAY 10

STRATEGIC MANAGEMENT AND FUTURE INNOVATIONS IN ISLAMIC TREASURY

•   Strategic planning for treasury and risk management functions
•   Integration of treasury with corporate strategy
•   Islamic fintech and digital treasury innovations
•   Blockchain, tokenization, and digital Sukuk platforms
•   ESG and sustainable Islamic finance initiatives
•   Emerging trends and global regulatory developments
•   Group project: designing a digital Islamic treasury model