this is for phd proposal
i have the topic and the reverences
you will fined the references at the end of the paper please use it in the text.
I am going to apply to university I have master degree on risk management, so please make it high standers
THE WHOLE PAPER SHOULD BE PARAPHRASE AND NOT JUST MINOR EDITING.
Please make sure to write it from new Because the file is been copied from my last maater disseration so no other university could test it to see been send bfore I mean please write and paraphrase it and add the references that I have attached
Please open Glasgow university requirement for PhD I think they wanted 1250 words with references This paper is only to apply to get into the unuveristy
This paper is PHD proposal
Aim and Objectives of Study
The main purpose of this proposal is to explore risk management practices in the Islamic insurance (Takaful) sector of Saudi Arabia. The objectives of the study are to:
1. Explore risk management in relation to Islamic insurance Takaful in Saudi arabia.in addition, identify types and nature of risks faced by Islamic insurance Takaful.
2. Highlight characteristics of Islamic insurance Takaful and discourse insurance instruments and activities.
3. Distinguish between conventional insurance and Islamic insurance Takaful l systems.
4. Assess risk management practices of Islamic insurance Takaful in Saudi Arabia.
The main research questions explored by the study include:
1. What are the risks faced by Islamic Islamic insurance Takaful in Saudi Arabia?
2. What is the relevance and contribution of Islamic Islamic insurance Takaful in Saudi Arabia economy?
3. Efficiency of risk management process and practices among Islamic insurance Takaful in Saudi Arabia?
4. How efficiency the insurance industry in Saudi Arabia there liquidation in order to meet there obligations?
THE TAKAFUL MARKET
There are 33 listed companies on the Saudi stock market (Tadawul),the Saudi insurance industry has growing by 21% duing the years 2013 to 2015 , its regulated by capital market authority , “The CMA’s functions are to regulate and develop the Saudi Arabian Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law. The basic objectives are to create an appropriate investment environment, boost confidence, and reinforce transparency and disclosure standards in all listed companies, and moreover to protect the investors and dealers from illegal acts in the market “
Shariah principles is main foundation of Islamic insurance Takafaul , its built on notions that losses and profits are to be shared between operators and shareholders, its determine based on ratios, the actives are basis on Shariah law and principles.
Principles of Shariea
1-(Riba) is an Arabic word for interest which is forbidden that companies could not take loan from financial institutions that provide interest or floating rates.
2-(Gharer) is an Arabic word for uncertainty the company should disclose all of activities and operations. For example investment or investment on pork, alcohol and music is forbidden.
3-Darar is an Arabic work for (Damage), to company reputation or to the shareholders .
The activity of the insurance companies is bases on partnership between operations and shareholders, the loss and profits are to shared.
The above Figure 1one is the illustrate the types of instrument that insurance
There are two models is used by the Takaful :
1- Mudrabah ( profit sharing) etc…
2- Wakalah model / Hybrid model etc..
Nature and types of risks faced by Islamic insurance Takaful:
Risk is associated with uncertainty of financial loss. It has negative impact on Islamic insurance asset values, opportunities and income growth.. Risk management entails a process of keeping risk under control, and developing strategies to manage the risks. Generally, risk management strategies include: reduction of negative effect of risks – risk reduction; avoidance of risks – risk avoidance; transfer of risk to another party – risk transfer; and acceptance of consequences (partly or wholly) of a particular risk – risk retention). The financial impact of Islamic insurance activities can be minimised through effective risk management
Credit risk is a potential risk emanating from delay or failure of the borrower, bond issuers or counter-parties to meet its obligations (Islamic banks are exposed to credit risk which characterises Islamic modes of finance. Islamic banking focuses more on investment and partnership contracts, than lending operations; hence, credit risk management is highly essential in the Islamic banking sector of Saudi Arabia. For example, credit risk is associated with murabaha contracts due to the possibility of default on the part of counterparties to pay their debts in full as they become due. Delay in payment or non-performance can arise through external systematic sources, internal financial causes, and the borrower’s moral hazard or wilful default.
2.6.2 Market Risk
Market risk is a risk arising from argumentative effects of price movements on the economic value of an asset. For an Islamic bank, market risk can take the form of unfavourable price movements in terms of yields (rate-of-return risk), benchmark rates (rate-of-return risk), foreign exchange rates (FX risk), and equity and commodity prices (price risk) which have a potential impact on the financial value of an asset over the life of the contract. Specifically, Islamic banks are also exposed to market risks due to volatility of market value of tradable, marketable, or leasable assets There are six main categories of market risks to which Islamic banks are susceptible, namely: commodity/asset price risk, price risk, leased asset value risk, currency risk, mark-up risk and securities price risk.
2.6.3 Liquidity Risk
Liquidity risk is a risk arising from difficulty or inability of ainurance to secure fund to finance its activity and meet its obligations.. Susceptibility of Islamic insurance to liquidity risk is slightly higher compared to conventional banks in that Islamic banks cannot provide liquidity facility on interest because Shariah principles prohibit borrowing on interest known as Riba
2.6.4 Operational Risk
Operational risk is a risk associated with inadequacy or ineffective internal processes and technology system of Islamic insurance Operational risk in Islamic insurance is multi-facet in nature as it involves control of internal business flow, processes, people, systems, procedures and Shariah regulation compliance. Hence, the need for Islamic insurance in Saudi Arabia to critically evaluate and manage their risks associated with their operations. The bank also needs to assess potential causes of loss from non-compliance with Shariah regulations and failure in its fiduciary responsibilities.
2.6.5 Rate of Return (ROR) Risk
ROR risk is a potential risk resulting from unexpected change in rate of return on investment. Islamic insurance in Saudi Arabia are susceptible to ROR risk, as it is essential to manage risks associated with assets and liabilities.
2.6.8 Equity Investment Risk
Equity investment risk is a risk arising partnership contract whereby both financing partner and managing partners share the venture’s risk, profit and loss in a pre-determined proportion Islamic ban insurance ks are susceptible to equity investment risk as such risk is associated with Islamic inurnace . For instance, Equity investment risk is highly relevant in respect of Trust Financing (Mudaraba) contracts. Mudaraba discussed Mudaraba is trust financing involving an agreement between two parties, financing partner and managing partner, where the fund is provided by the financing partner and the managing partner is an entrepreneur who manages the business or venture. Profits from Mudaraba (trust finance) are shared in a pre-determined proportion between the Mudaraba partners –
According to Bryman and Bell (2015), research design deals with a logical problem and not a logistical problem, however social research needs a design before data collection and analysis. De Vaus (2002, p.9) sates that “the function of a research design is to ensure that the evidence obtained enables us to answer the initial question as unambiguously as possible”. Research design can be case study, experimental, longitudinal or cross sectional. This study is a survey-based investigation, which is based on social constructivism philosophical perspective. This philosophy advocates that reality is multidimensional in nature depending on the area under investigation and researchers’ aim (Babbie, 2010; Saunders, Lewis and Thornhill, 2012; Sekaran and Bougie, 2013; Bryman and Bell, 2015).
Qualitative and quantitative are two research method approaches used depending upon the aim and research area under consideration. Qualitative research adopts no numerical approach to data collection and analysis whereas, quantitative data collection is and analysis is based on numerical analysis (Bryman and Bell, 2015). According to Babbie (2010), quantitative adapt analysis can be a great approach for those researchers where the aim is to draw meaningful results from large set of qualitative data. Similarly, Miller and Gasteen (2011) also assert that it helps to separate out the large number of confounding factors, which often obscure the main qualitative findings. This research adopts quantitative approach to data analysis in order to ensure independence of the researcher from the phenomenon as Sekaran and Bougie (2013) is of the view that quantitate approach is helpful when the qualitative information has been collected in some structures way. Thus, quantitative modelling is used to achieve the states aim and to draw conclusions (Babbie, 2010; Saunders, Lewis and Thornhill, 2012; Sekaran and Bougie, 2013; Bryman and Bell, 2015). In addition, researchers such as Lewis and Thornhill (2012) also agree to the advantages of quantitative data collection as it facilitates comparative analysis of data based on socio-economic factors; allows to generate inferences and generalise the results; helps to validate theory and the results can be used for effective decision making (Babbie, 2010; Saunders, Lewis and Thornhill, 2012; Sekaran and Bougie, 2013; Bryman and Bell, 2015). However, the disadvantages of quantitative data analysis approach cannot be overlooked. Babbie (2010) is of the view that there are more chances in quantitative approach to overlook useful information due to its objective nature. Therefore, in some situations the results are too abstract which makes it less applicable in certain situations (Babbie, 2010; Saunders, Lewis and Thornhill, 2012; Sekaran and Bougie, 2013; Bryman and Bell, 2015).
Data collection can be secondary or primary (Miller and Gasteen, 2011). Primary data collection is first hand data collected through interviews, questionnaires, focus group and observations. In contrast, secondary data is second hand data, already collected for different purposes and can further be gathered from newspapers, journals and published reports. The choice of selecting primary or secondary method mainly depends upon the research aim. Secondary data is collected from Capital Market authority (CMA) announcements. These announcements would be viewed viewed from 14th June to 10th July where over 1700 announcements for both insurance and reinsurance corporations are analysed. This research aims to analyse the current BCM practices in Saudi Arabia, hence, primary data collection method is also appropriate method to select.
These assumptions are tested using SPSS statistics
Significant of this study
This is study has never been done before, I will analysis the fines penalties and suspensions of shares and requested to increase capital through regulator body in Saudi “ capital market authority “ through their web site , there over 1500 imposition on insurance companies from 2010 to 2016 current years on insurance companies.
The regulation imposition would give a clearer transparent of the active by the corporate governs in the Islamic insurance Takaful in Saudi.
• Abdul Rahman, A. R. (2007). Islamic banking and finance: Between ideal and realities. IIUM Journal of Economics and Management, 15, pp. 123-141.
• Albilad (2015) Saudi Insurance Sector 9M 2015, Albilad Capital.
• Anchor, J. R and Sawalha, I. H. S. (2012) Business continuity management in the Middle East: An emerging story. Continuity, 1, pp. 16-17.
• Anwar, H. (2008). Islamic finance: A guide for international business and investment. London: GMB Publishing.
• Arifin, J., Shukri, A. S. and Sulong, Z. (2013). A conceptual model of literature review for family takaful (Islamic life insurance) demand in Malaysia. International Business Research, 6(3), pp. 210-216.
• Babbie, E. (2010). The practice of social research (12th edition). London: Wadsworth/Cengage.
• Bryman, A. and Bell, E. (2015). Business research methods (4th edition). London: Oxford Publishers
• Czinkota, M. R., Ronkainen, I. A. and Moffett, M. H. (2011). International business (8th edition). Danvers, MA: John Wiley & Sons.
• Coolen-Maturi, T. (2013). Islamic insurance (Takaful): Demand and supply in the UK. International Journal of Islamic and Middle Eastern Finance and Management, 6(2), pp. 87-104.
• Demidenko, E. and MuNutt, P. (2011). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics. 37 (10), pp. 802-815.
• De Vaus (2002, p.9) http://research.apc.org/images/5/5f/De_Vaus_chapters_1_and_2.pdf
• Divanna, J. and Shreih, A. (2009). A new financial dawn: The rise of Islamic finance. United Kingdom: Leonardo and Francis Press Ltd.
• Elliott, D., Swartz, E. and Herbane, B. (2010). Business continuity management. London: Routledge.
• El-Tahir, H. (2015). The way forward for Takaful: Spotlight on growth, investment and regulation in key markets. Manama, Bahrain: Deloitte & Touche. Retrieved from: https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/financial-services/fsi_insurance_takaful_2014.pdf
• Ernst & Young Global Limited (2014). Global Takaful insights 2014: Market updates – Growth momentum continues. London: EYGL. Retrieved from: http://www.ey.com/Publication/vwLUAssets/EY_Global_Takaful_Insights_2014/$FILE/EY-global-takaful-insights-2014.pdf (Accessed 13 February 2016).
• Fink, S. (2002). Crisis Management Planning for the Inevitable. Lincoln: Universe Inc
• Fadun, O. S. (2013). Promoting enterprise risk management (ERM) adoption in business enterprises: Implications and challenges. International Journal of Business and Management Invention. 2(1), pp. 69-78.
• Fadun, O. S. (2015). Takaful (Islamic insurance) practices: Challenges and prospects in Nigeria. Journal of Risk &Insurance Practice, 1(1), 14-24.
• Farooq, S. U., Chaudhry, T. S., Alam, F. and Ahmad, G. (2010). An analytical study of the potential of Takaful companies. European Journal of Economics, Finance and Administrative Sciences, 20, pp. 55-75.
• Friedman, Milton. Capitalism and Freedom. Fortieth Anniversary Edition ed. Chicago: The University of Chicago Press, (1962) 2002.
• Ghandour, A. and Benwell, G. (2012). A framework of business recovery in the aftermath of a disaster. International Journal of Business Continuity and Risk Management, 3(3), pp. 263-274.
• Heng, G. N. (2015). Business continuity management planning methodology. International Journal of Disaster Recovery and Business Continuity, 6, pp. 9-16.
• Hewson, C., Yule, P., Laurent, D. and Vogel, C. (2003). Internet research methods: A practical guide for the social and behavioural sciences. London: Sage.
• Hiles, A. (2011). The definitive handbook of business continuity management (3rd edition). Chichester, UK: John Wiley.
• Htayi, S. N. N. and Salman, S. A. (2013). Shariah and ethical issues in the practice of the modified Mudharabah family Takaful model in Malaysia. International Journal of Trade, Economics and Finance, 4(6), pp. 340-342.
• Hussain, M. M. and Pasha, A. T. (2011). Conceptual and operational differences between general Takaful and conventional insurance. Australian Journal of Business and Management Research, 1(8), pp. 23-28.
• International Standard Organization (2012). ISO 22301:2012 Societal security – Business continuity management systems – Requirements. ISO. Retrieved from: https://www.pea.co.th/BCM/DocLib/ISO_22301_2012.pdf [Accessed 7 June 2016].
• Jones, G. and George, J. (2013). Essentials of contemporary management (5th Ed.). New York, NY: McGraw-Hill Irwin.
• Jones, M. (2014) Predicting the future of Saudi Insurance Market: Global Insurance Available at: http://www.sama.gov.sa/en-US/Insurance/Publications/KSA%20Market%20Report_2015_English-vf.pdf
• Leflar, J. and Siegel, M. (2013). Organizational resilience: Managing the risks of disruptive events – A practitioner’s guide. Boca Raton, FL: Taylor & Francis Group.
• Lingeswara (2012) http://www.isaca.org/Journal/archives/2012/Volume-1/Pages/Key-Issues-Challenges-and-Resolutions-in-Implementing-Business-Continuity-Projects.aspxassert
• Masud, H. (2011). Takaful: An innovative approach to insurance and Islamic finance. University of Pennsylvania Journal of International Law, 32(4), pp. 1133-1164
• Masood, O., Naizi, G. K. S. and Ahmad, N. (2011). An analysis of the growth and rise of smaller Islamic banks in last decade. Qualitative Research in Financial Markets, 3(2), pp. 105-116.
• Mikes, A. and Kaplan, R. S. (2014). Towards a contingency theory if enterprise risk management. Working Paper 13-063. Boston, MA: Harvard Business School.
• Moody’s (2015) Moody’s: Saudi Arabia’s fast-growing insurance market has untapped potential, Available at: https://www.moodys.com/research/Moodys-Saudi-Arabias-fast-growing-insurance-market-has-untapped-potential–PR_323135
• Moore, E. and Hale, T. (2014). UK sukuk bond sale attracts £2bn in order. Financial Times. Retrieved from: http://www.ft.com/intl/cms/s/0/7c89467e-fc4e-11e3-98b8-00144feab7de.html#axzz40FPaGb00
• Nagaoka, S. (2007). Beyond the theoretical dichotomy in Islamic finance: Analytical reflections on murabahah contracts and Islamic debt securities. Kyoto Bulletin of Islamic Area Studies, 1, pp. 72-91.
• Olayemi, A. A. M. (2012). Islamic insurance (Takaful) in Nigeria: A proposal for the adoption of Malaysian legal framework. Germany: Lap Lambert Academic Publishing.
• Oxford Business Group (2014) Saudi insurance market remains tight, Available at: http://www.oxfordbusinessgroup.com/news/saudi-insurance-market-remains-tight
• PWC (2015) PWC expects more consolidation in the KSA insurance market, Available at: https://www.pwc.com/m1/en/media-centre/2015/pwc-expects-more-consolidation-in-the-ksa-insurance-market.html
• Randeree, K., Mahal, A. and Narwani, A. (2012). A business continuity management maturity model for the UAE banking sector. Business Process Management Journal, 18(3), pp. 472-492.
• Redja, G. E. and McNamara, M. (2013). Risk management and insurance (12th edition). London: Pearson.
• Rudrajeet, P., Hakan, T. and Heikki, M. (2011). Organisational resilience and health of business systems. International Journal of Business Continuity and Risk Management, 2(4), pp. 372-398.
• Saadi, D. (2016) Saudi insurance sector to outperform oil, Available at: http://www.thenational.ae/business/economy/saudi-insurance-sector-to-outperform-oil
• Sadeghi, M. (2010). The evolution of Islamic insurance – Takaful: A literature survey. Insurance Markets and Companies: Analyses and Actuarial Computations, 1(2), pp. 100-107.
• SAMA (2015) The Saudi Insurance Market Report 2015: Available at: http://www.sama.gov.sa/en-US/Insurance/Publications/KSA%20Market%20Report_2015_English-vf.pdf
• Saunders, M., Lewis, P. and Thornhill, A. (2012). Research methods for business students (6th edition). Harlow: Pearson.
• Sawalha, I. (2013). Organisational performance and business continuity management: A theoretical perspective and a case study. Journal of Business Continuity and Emergency Planning, 6(4), pp. 360-373.
• Sawalha, I. H. and Anchor, J. R. (2012). Business continuity management in emerging markets: The case of Jordan. Journal of Business Continuity and Emergence Planning, 5(4), pp. 327-337.
• Sawalha, I. H. S., Anchor, J. R. and Meaton, J. (2015). Continuity Culture: A key factor for building resilience and sound recovery capabilities. International Journal of Disaster Risk Science, 6(4), pp. 428-437.
• Sekaran, U. and Bougie, R. (2013). Research methods for business. Chichester: Wiley.
• Shannon, D. M., Johnson, T. E., Searcy, S. and Alan L. (2002). Using electronic surveys: Advice from survey professionals. Practical Assessment, Research & Evaluation, 8(1). [Online] Retrieved from: http://PAREonline.net/getvn.asp?v=8&n=1 [Accessed 15 JUNE 2016].
• Shuja, A. and Abbasi, A. S. (2015). An investigation of the impact of resource mobilization on business continuity management: A study on banking sector of Pakistan. Science International, 27(3), pp. 2551-2558.
• Statistics Solution (2016) Pearson Correlation Assumptions, http://www.statisticssolutions.com/pearson-correlation-assumptions/[Accessed 15 JUNE 2016].
• Tama, R. L. S. (2012). Key issues, challenges and resolutions in implementing business continuity projects. Information Systems Audit and Control Association (ISACA) Journal, 1, pp. 1-4.
• UK Cabinet Office (2013). Press released: Business continuity guide launched. GOV.UK [Online]. Retrieved from: https://www.gov.uk/government/news/business-continuity-guide-launched [Accessed 6 April 2016].
• Vaughan, E. J. and Vaughan, T. M. (2014). Fundamentals of risk and insurance. London: Wiley.
• Zaman, A. (2008). Islamic economics: A survey of the literature. Munich, Germany: Munich Personal RePEc Archive (MPRA), No. 1104.