---
config:
theme: neo-dark
---
graph TD
A[Risks Mitigation] --> B[Operational Risks]
A --> C[Financial Risks]
B --> D[HR Risk]
D --> D1[Mitigation: Staff training, robust hiring processes, and retention policies]
B --> E[Organizational Risk]
E --> E1[Mitigation: Clear governance frameworks, internal audits, and efficient workflows]
B --> F[Legal Risk]
F --> F1[Mitigation: Compliance with legal regulations and contracts, and regular legal reviews]
B --> G[Reputation Risk]
G --> G1[Mitigation: Transparent communication and quality service delivery]
B --> H[Sharia Non-compliance Risk]
H --> H1[Mitigation: Regular Sharia audits and strict adherence to Islamic finance principles]
C --> I[Credit Risk]
C --> J[Liquidity Risk]
C --> K[Market Risk]
C --> L[Capital Adequacy Risk]
C --> M[Equity Investment Risk]
I --> N[Qard Hasan]
N --> Q[Guarantors family included]
Q --> Q1[Mitigation: Strengthens repayment accountability]
N --> R[Takaful Fund]
R --> R1[Mitigation: Covers unforeseen client defaults]
N --> S[Client Screening]
S --> S1[Mitigation: Ensures borrower reliability and reduces default risk]
I --> O[Murabaha]
O --> T[Credit Checks]
T --> T1[Mitigation: Verifies client creditworthiness]
O --> U[Follow-ups]
U --> U1[Mitigation: Ensures timely repayments]
O --> V[Collateral/Guarantees]
V --> V1[Mitigation: Provides security against defaults]
I --> P[Salam and Istisnaa]
P --> W[Delivery/Quality Risk]
W --> Y[Collateral]
Y --> Y1[Mitigation: Secures against non-delivery or defective goods]
W --> Z[Structured Contracts]
Z --> Z1[Mitigation: Defines obligations clearly to avoid disputes]
P --> X[Natural Disasters]
X --> AA[Guarantees]
AA --> AA1[Mitigation: Protects lender from disaster-induced defaults]
J --> BB[Diversified Cash Flows]
BB --> BB1[Mitigation: Ensures liquidity by spreading revenue sources]
J --> CC[Asset-Liability Matching]
CC --> CC1[Mitigation: Aligns cash flows to prevent liquidity crises]
K --> DD[Rate of Return Risk]
DD --> FF[Asset-Liability Management]
FF --> FF1[Mitigation: Matches rate-sensitive assets with liabilities]
K --> EE[Foreign Exchange Risk]
EE --> GG[Hedging]
GG --> GG1[Mitigation: Reduces exposure to currency fluctuations]
EE --> HH[Currency Matching]
HH --> HH1[Mitigation: Balances currency inflows and outflows]
L --> II[Increased Retained Earnings]
II --> II1[Mitigation: Strengthens financial buffers]
L --> JJ[Risk-Weighted Asset Management]
JJ --> JJ1[Mitigation: Aligns capital reserves with asset risk]
M --> KK[Due Diligence]
KK --> KK1[Mitigation: Ensures informed investment decisions]
M --> LL[Transparent Information Sharing]
LL --> LL1[Mitigation: Builds trust and reduces asymmetric information]