IMPACT OF RISK MANAGEMENT ON THE PERFORMANCE OF PARTICIPATIVE BANKS IN MOROCCO: A STUDY IN THE CONTEXT OF ISLAMIC FINANCE

Abstract

This study explores the crucial link between risk management and the performance of participatory banks in Morocco, focusing on the context of Islamic finance. In an environment marked by the COVID-19 pandemic, increasing cyber-attacks, and regulatory changes, the issue of risk management is becoming paramount to guarantee the solvency of banks and maximize their profits.

Using a mixed-methods approach combining semi-structured interviews and quantitative research, we examined the differences between Islamic and conventional financial risks, the impact of risk severity on bank risk management, the influence of governance on risk management, and the effect of risk management on the performance of participatory banks. Our results highlight the specific challenges faced by these institutions, as well as the risk management strategies needed to ensure their long-term stability and success.

This research contributes to the literature on Islamic finance by providing valuable insights into risk management in this rapidly evolving sector.