The primary objective of this paper is to find out the Shariah Non-Compliance Risks (SNCRs) of Murabahah along with proposing its risk management system. As the activity of Shariah non-compliance is negligence or failure to comply with the Shariah rules and regulations as well as for some extent the breach of the law of the land. Hence, Identification, Monitoring, Control and Mitigation of SNCRs need to be undertaken sensitively otherwise the spirit and objective of Islamic banks (IBIs) will be no more different than conventional banking system. Moreover, failure in control and mitigation of Shariah non-compliance risks may render the transaction into 'Null and Void' or 'Voidable' therefore, the return/profit is considered impermissible. In addition, it may expose the status of IBIs at high risk regarding their reputation, profitability and confidence of their stakeholders which may lead the Institution towards collapse and downfall. Keeping in view, the need of SNCR management, this paper is established to support the industry for development of their own SNCR management system so that the targeted outcomes of Islamic banking on the basis of Shariah principles i.e. Shariah compliance, permitted profits and sound reputation can easily be achieved.