Evaluation of Financial Risk Management in Iraqi Banks Comparison Study of Islamic Banks and Commercial Banks

Abstract

Current research aims to study the extent to which Iraqi banks use risk management in works and methods to eliminate the risks associated with their business activity within the Iraqi banking sector, Also for comparison between Islamic banks, commercial and conventional banks, and traditional commercial banks with Islamic branches (Islamic Windows) In terms of risk management jobs. A standardized questionnaire was used to cover the main aspects of risk management: 1) Understanding Risks, 2) Managing Risks, 3) Identifying Risks, 4) Analyzing and Evaluating Risks, 5) Monitoring Risks, 6) Risk Management Practices Finally, 7) the types of risks faced by banks of all kinds operating in the Iraqi banking market, using a sample of 25 banks operating in the Iraqi banking market. The questionnaires were distributed to heads and managers of risk departments in banks, also it was supported by personal interviews. The results of the statistical study proved that the most types of risks faced by Islamic and traditional commercial banks in Iraq operating in the Iraqi banking market are both credit risks and money risks. Money risk represents one of the most important types of risk for Islamic banks, as there are not many short-term investment tools that are compatible with the provisions of Islamic Legislation. Which can attract the benefits of money to the governors of Islamic banks, and this is one of the most important challenges facing Islamic banks at the present time (short-term employment) Whereas, the activity management contracts within Islamic banks differ in the nature of their work and structure from traditional commercial banks to ensure their compliance with the provisions of Islamic legislation. After the approval of the Sharia Supervisory Board