Kuala Lumpur, 13 December 2016 – The Islamic Financial Services Board (IFSB) is pleased to announce its first translated publication in French, the Guiding Principles of Risk Management for Institutions (other than Insurance Institutions) offering Islamic Financial Services (IIFS) or IFSB-1. The IFSB currently publishes its standards and guiding principles in English and Arabic languages. The year 2016 marked the initiation of the translation of its first standard into the French language as part of the IFSB’s Strategic Performance Plan 2016-2018 under Strategic Key Result Area (SKRA 2) pertaining to the Facilitating the Implementation of Prudential Standards and Capacity Development.
On the issuance of IFSB-1 in the French language, Secretary General of the IFSB, Mr Jaseem Ahmed remarked, “The launching of IFSB-1 in French is a direct response to the demand from the IFSB French-speaking member organisations, which was highlighted during several Meet the Members and Industry Engagement Sessions as well as in the IFSB’s membership satisfaction and implementation surveys.” “Translation of the IFSB standards” he added, “aims to allow greater understanding of the documents in the French-speaking jurisdictions, which would facilitate the implementation of the IFSB standards in these countries, thus strengthening the supervisory framework and risk management in the IIFS.”
IFSB-1 provides a set of guidelines of best practices for establishing and implementing effective risk management in IIFS. In particular, the Standard sets out fifteen principles for managing the risks inherent in Sharīʻah-compliant financial businesses. It also delivers specific guidance for six categories of risk, drawn from discussions on industry practices which include credit risk, equity investment risk, market risk, liquidity risk, rate of return risk and operational risk. Moreover, IFSB-1 elaborates on implications arising from displaced commercial risk and reputational risk.
IFSB-1 was adopted by the IFSB Council during the 7th IFSB Council Meeting held at the Islamic Development Bank Headquarters in Jeddah, Saudi Arabia in December 2005.
The IFSB is planning to translate more of its published standards into French in 2017.
The IFSB-1 document in the French language is available for download on the IFSB website www.ifsb.org.
