Mixed method approach to assess the effectiveness of risk management and corporate governance: A case of islamic banks in oman

Abstract

The current study is an attempt to assess the effectiveness of risk management and corporate governance of Islamic banks (IBs) in Oman. The study uses mixed method approach to critically evaluate the existing practices followed by Islamic banks for the future enhancement. As like as other nation, the Islamic banking (IBs) is one of the fast growing sectors in Oman. Though, this sector grows rapidly, there are series of issues laid the Islamic banks is in destructive performance due to shariah non-compliance, governance and other risks pertaining to their operation (Ginena, Karim 2014). The risk management is highly important in the IBs industry as the survival of the financial organizations highly rely on how they handle their risks effectively (Hesham, 2014). The study employs mixed methods of research approach by collecting the quantitative data using the annual report of the selected IBs and qualitative data obtained through in-depth interview method from the senior managers. The study infers that there are good risk management practices followed in their business practices except few areas like CAR and the management of asset quality.