Strategic Risk

The Islamic bank, like all institutions, is constantly faced with competition, from the beginning of its establishment and as the bank continues to be a going concern. To face this, the bank requires a mature strategy, executed effectively, to survive the competition and even emerge victorious. In order to survive in a competitive business environment, the bank needs to ensure that its business is optimally healthy and profitable. Chapter 9 covers an Islamic bank's strategic risks. This chapter specifically discusses the concept of strategic risk for the Islamic bank, the scope and definition of strategic risk, the determinants of strategic risk and how to mitigate it, as well as the issues relevant to strategic risk.