Course Overview

Corporate governance is essential for ensuring transparency, accountability, and long-term sustainability in financial institutions. In Islamic banking and finance, governance becomes more complex due to the need to comply with Sharia’a principles alongside conventional regulatory frameworks. Weak governance can lead to compliance risks, reputational issues, and misalignment between financial performance and ethical objectives.

The Corporate Governance in Islamic Banking and Finance programme by Transformentors Academy provides a comprehensive understanding of governance practices tailored to Islamic financial institutions. Participants will explore the evolution of Islamic corporate governance, the role of Sharia’a Supervisory Boards, board structures, and governance-related risk management practices.

The programme also focuses on aligning governance systems with Maqasid al-Sharia’a while maintaining operational efficiency and regulatory compliance. Through case studies and real-world discussions, participants will examine current governance challenges faced by Islamic banks globally.

By the end of the programme, participants will be equipped to assess, design, and enhance governance frameworks that support ethical decision-making, effective risk oversight, and sustainable institutional growth.

Agenda

Day — 1 Introduction to Corporate Governance & Islamic Finance

• Understanding the concept, objectives, and evolution of corporate governance
• Exploring the principles of Islamic banking and finance
• Analysing the growth and global structure of the Islamic finance industry
• Understanding key Sharia’a prohibitions and their implications for financial activities
• Identifying governance challenges unique to Islamic financial institutions
• Case study: Analysing the governance framework of a real-world Islamic bank

Day — 2 Sharia’a Governance Frameworks & Compliance Mechanisms

• Understanding the structure and components of Sharia’a governance frameworks
• Defining the roles and responsibilities of Sharia’a Supervisory Boards (SSBs)
• Exploring methodologies for Sharia’a audit, review, and product certification
• Identifying common Sharia’a non-compliance risks and their implications
• Examining ethical principles and accountability in Sharia’a-based governance
• Case study: Analysing a Sharia’a governance failure and key lessons learned

Day — 3 Risk Management & Governance Structures

• Examining the composition and role of boards of directors in Islamic banking
• Understanding key board committees and their functions:
  • Audit Committee
  • Risk Committee
  • Nomination Committee
  • Compensation Committee
• Identifying financial risks specific to Islamic financial institutions
• Applying risk management principles aligned with Maqasid al-Sharia’a
• Understanding the interaction between:
  • Internal Controls
  • External Auditors
  • Sharia’a Auditors
• Case study: Reviewing governance and risk oversight practices in a leading Islamic financial institution

Day — 4 Stakeholder Engagement & Reporting

• Identifying key stakeholders in Islamic financial institutions:
  • Shareholders
  • Investment Account Holders
  • Regulators
  • Sharia’a Supervisory Boards
  • Wider Society
• Analysing stakeholder expectations within a Sharia’a-compliant governance framework
• Developing effective stakeholder engagement strategies in Islamic banking
• Understanding the importance of reporting frameworks and communication mechanisms
• Exploring disclosure requirements in Islamic finance:
  • Financial Disclosures
  • Sharia’a Compliance Disclosures
  • Risk and Governance Reporting
• Case study: Evaluating stakeholder communication and disclosure practices in an Islamic financial institution

Day — 5 Monitoring, Evaluation & Future Trends

• Applying techniques to monitor and evaluate corporate governance frameworks
• Using metrics to assess governance performance in Islamic financial institutions
• Understanding the role of audits in governance enhancement:
  • Internal Audit
  • External Audit
  • Sharia’a Audit
• Analysing emerging trends impacting governance:
  • Digital Governance
  • Sustainability Reporting
  • ESG Integration
• Examining global regulatory convergence and its implications
• Case study: Comparing governance ratings and compliance outcomes across Islamic banks

Learning Outcomes

By attending the Corporate Governance in Islamic Banking and Finance programme, you will be able to:

• Understand the principles, objectives, and evolution of corporate governance in Islamic finance
• Differentiate between conventional and Islamic governance frameworks, with a focus on Sharia’a compliance
• Explain the role of Sharia’a Supervisory Boards (SSBs) and related compliance mechanisms
• Design effective board and committee structures to enhance governance and oversight
• Apply risk management strategies aligned with Sharia’a principles and sustainability goals
• Monitor, evaluate, and report on corporate governance performance
• Analyse emerging trends and their impact on the future of Islamic corporate governance

Who Should Attend

This Corporate Governance in Islamic Banking and Finance programme is ideal for professionals involved in governance, compliance, and oversight, including:

• Board members and senior executives of Islamic financial institutions
• Sharia’a Supervisory Board members and Sharia’a compliance officers
• Governance, Risk, and Compliance (GRC) professionals
• Internal and external auditors working with Islamic banks
• Legal and regulatory professionals in financial services
• Islamic finance consultants and advisors
• Regulators and supervisors overseeing Islamic financial institutions