Financial Engineering and its Role in Risk Management in Islamic Banks

With special reference to Islamic banks in Jordan

Abstract

This study aims to identify the role of financial engineering in risk management in Islamic banks. To achieve the objective of the study, a questionnaire that consists of (29) items is designed and distributed to (3) areas on the study sample which consists of (28) male and female employees working in different branches of Islamic banks: (Islamic International Arab Bank and the Jordan Islamic Bank for Investment and Finance) in the governorates of Amman and Irbid. The sample is randomly selected from the population of  the study. After doing the necessary statistical processes, the results shows that there is a significant relationship at the level of significance (α ≤ 0.05) between applying financial engineering and risk management in Islamic banks. In addition, there is no difference in the views of the sample members regarding the relationship between applying financial engineering and risk management in Islamic banks due to the variables of (gender, age, academic qualification, and years of experience).