EVOLUTION OF ISLAMIC CAPITAL RISK MANAGEMENT- HISTORICAL TRENDS AND FUTURE PROSPECTS

Abstract

In the larger context of promoting Islamic banking principles, practices, and regulatory frameworks for sustainable growth, this  study analyses the evolution of Islamic Capital Risk Management (ICRM) by analyzing past trends and predicting prospects. The goal is to provide a comprehensive view of the evolution of ICRM, highlighting its importance in the developing field of Islamic banking. The strategy combines meticulous historical analysis with predictions for the future. It offers in-depth historical analyses of ICRM that clarify how risk assessment, risk mitigation tactics, and regulatory frameworks have changed over time. Then, it projects historical trends into the future using mixed analysis and expert judgment, offering insightful information about the adaptation and sustainability of ICRM in the face of new difficulties. The main purpose is to emphasize the crucial part that ICRM plays in fostering financial stability and long-term growth within Islamic finance. It includes documenting the ICRM's historical development and key moments, examining regulatory shifts, and evaluating cuttingedge risk management techniques. Additionally, it forecast future ICRM trends while integrating digitalization, sustainable finance ideas, and shifting regulatory paradigms. The ultimate objective of this study is to offer crucial understandings that advance comprehension of the past, present, and future of ICRM and enable its continuing progress within the dynamic environment of Islamic finance.