Islamic Treasury and Risk Management Training Course

Duration 5 days 10 modules · 33 contact hours
Level Intermediate Certificate on completion
Who attends Treasury Managers, Treasury Dealers and others
Fee from USD 1,100 KSh 95,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 16 Nov 2026 Course code SD-BI-182

Before you join: This intermediate course assumes familiarity with core banking products, financial statements, cash-flow concepts and basic financial risk terminology.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Islamic banks and financial institutions must manage liquidity, funding, foreign exchange, profit-rate exposure and counterparty risk without relying on conventional interest-based instruments. Treasury teams need products that meet Shariah requirements, work within legal and operational constraints, and provide reliable cash-flow management under stressed conditions. Weak contract documentation, unclear ownership, poor limit monitoring or untested funding plans can create financial loss, Shariah non-compliance, regulatory concern and reputational damage.

This course develops the practical treasury and risk management skills required to manage Islamic money-market placements, commodity murabaha funding, wakalah investments, sukuk portfolios, wa'd-based foreign exchange arrangements and profit-rate hedging structures. Participants learn to build liquidity forecasts, calculate liquidity ratios, manage maturity mismatches, measure market and counterparty exposures, assess collateral, set dealing limits and report risk information to senior management and Shariah governance bodies.

Teaching combines focused technical briefings with banking cases, product documentation reviews, cash-flow analysis, risk-reporting tasks, group discussions and treasury simulations. Participants work with realistic Islamic banking scenarios involving deposit withdrawals, sukuk price movements, currency settlement failures and counterparty limit breaches. They leave with a practical Islamic treasury risk management pack containing reusable forecasting, limit-setting, stress-testing and control templates, plus a certificate of completion.

The course is suited to treasury, risk, finance, operations, audit and Shariah governance professionals working in Islamic banks, Islamic windows, takaful firms, development finance institutions and banks expanding their Islamic product capability.

What you will be able to do

  • Construct rolling liquidity forecasts and funding maturity profiles for Islamic banking products
  • Apply AAOIFI Shariah Standards when assessing treasury products and transaction documentation
  • Evaluate wakalah, mudarabah, commodity murabaha and sukuk treasury instruments
  • Calculate liquidity, foreign exchange, profit-rate and counterparty risk exposures
  • Design treasury limits, escalation procedures and contingency funding plan triggers
  • Assess wa'd-based foreign exchange and profit-rate hedging structures against underlying exposures
  • Produce treasury risk reports using stress tests, key risk indicators and management information packs
  • Develop a 90-day treasury risk control improvement plan with accountable owners

Benefits of attending

For you

  • Assess Islamic treasury transactions with greater confidence during product and deal reviews
  • Build credible liquidity forecasts and contingency funding recommendations
  • Recognise control failures in FX settlement, collateral and counterparty limit processes
  • Contribute informed analysis to treasury risk committees and Shariah governance discussions
  • Create a targeted development plan for a treasury or risk management role

For your organisation

  • Improved control over Islamic bank liquidity gaps, funding concentrations and maturity mismatches
  • More consistent assessment of Shariah-compliant treasury products and documentation
  • Earlier identification of FX settlement failures, counterparty excesses and collateral weaknesses
  • Stronger treasury reporting for risk committees, senior management and Shariah boards
  • Practical control improvements aligned with liquidity stress testing and contingency funding requirements

Course modules

10 modules over 5 days

Participants can define the Islamic treasury mandate, key governance roles and Shariah control requirements.

  • Treasury mandate aligned with Shariah board rulings and risk appetite
  • Sources and uses mapping for Islamic bank balance sheets
  • Three-lines model assigned to treasury, risk, compliance, and Shariah functions
  • AAOIFI Shariah Standards governing treasury contracts, documentation, and prohibited elements
  • Riba, gharar, maysir, and asset ownership tested in transactions
  • Shariah non-compliance risk events escalated through documented remediation procedures

Participants can forecast liquidity needs and assess funding resilience using recognised liquidity measures.

  • Contractual cash flows classified by product, currency, maturity, and behaviour
  • 13-week rolling cash forecast built from settlement and funding data
  • LCR calculation using high-quality liquid assets and stressed outflows
  • NSFR drivers linked to stable funding and asset maturities
  • IFSB-12 liquidity risk principles applied to Islamic banking operations
  • Contingency funding plan triggers, escalation paths, and Shariah-compliant sources

Participants can evaluate core Islamic money-market products for funding, investment and settlement use.

  • Wakalah investment placements priced using expected profit rates and agency fees
  • Mudarabah interbank investments allocating profit by agreed ratios
  • Commodity murabaha funding sequenced through purchase, sale, and settlement
  • Tawarruq structures assessed for ownership, trading controls, and documentation
  • Central-bank Islamic facilities compared by tenor, collateral, and settlement mechanics
  • Counterparty limits set for interbank placements and settlement banks

Participants can manage sukuk investments and liquidity buffers within risk and Shariah constraints.

  • Sukuk cash-flow profiles analysed for liquidity, credit, and duration characteristics
  • Eligibility criteria distinguish HQLA, reserve assets, and encumbered securities
  • Duration and modified duration measured for fixed-return sukuk portfolios
  • Reinvestment risk assessed through maturity ladders and profit-rate scenarios
  • Repo-like collateralised arrangements evaluated against Shariah approvals and legal enforceability
  • Investment limits connected to concentration thresholds, ratings, and issuer groups

Participants can manage Islamic foreign exchange transactions, currency positions and settlement exposures.

  • Spot foreign exchange executed under approved wa'd and possession arrangements
  • Wa'd-based FX forwards matched to underlying currency exposures
  • Currency positions reconciled across nostro accounts, deal tickets, and confirmations
  • Settlement risk measured using principal-at-risk and payment cut-off times
  • Herstatt risk controls cover failed payments, time zones, and counterparty exposure
  • FX limit breaches investigated through position reports and escalation protocols

Participants can measure profit-rate exposure and assess permissible Islamic hedging arrangements.

  • Repricing gaps constructed from asset, liability, and off-balance-sheet cash flows
  • Earnings-at-risk estimated under parallel and non-parallel profit-rate shocks
  • Economic value sensitivity measured using duration-based valuation techniques
  • Wa'd-based profit-rate swaps matched to approved hedging objectives
  • IIFM Tahawwut Master Agreement terms reviewed for termination and collateral
  • Hedge effectiveness documented through exposure identification, testing, and ongoing monitoring

Participants can assess counterparty exposures and establish collateral and limit management controls.

  • Counterparty credit assessments combine financial statements, ratings, and Shariah eligibility
  • Potential future exposure calculated for wa'd, FX, and investment transactions
  • Credit limits allocated by tenor, product, country, and group exposure
  • Wrong-way risk identified where collateral value correlates with counterparty distress
  • Collateral haircuts reflect market volatility, legal rights, and liquidation periods
  • Netting enforceability confirmed before recognising exposure reductions in limit reporting

Participants can identify, measure and control major non-credit treasury risks.

  • Value-at-risk assumptions challenged against thin Islamic instrument market liquidity
  • Stress scenarios combine sukuk spread widening, FX shocks, and deposit withdrawals
  • Key risk indicators track failed settlements, valuation disputes, and documentation exceptions
  • Independent price verification governs sukuk valuations and model input approval
  • Shariah breach registers record incidents, financial impact, purification, and corrective actions
  • Operational loss events classified by process, people, systems, and external causes

Participants can prepare treasury risk information that supports timely management and board decisions.

  • Risk appetite statements translate board tolerances into treasury operating limits
  • Daily limit reports distinguish utilisation, excesses, ageing, and authorised exceptions
  • Liquidity stress testing combines idiosyncratic, market-wide, and combined scenarios
  • Reverse stress testing identifies conditions that exhaust Shariah-compliant funding sources
  • Management information packs connect exposures, trends, actions, and decision owners
  • Capital implications considered for market, credit, and operational risk positions

Participants can prioritise practical improvements to treasury processes, controls and reporting.

  • Deal lifecycle maps connect front office, middle office, operations, and finance
  • Control matrices assign preventive, detective, and corrective measures to key risks
  • Product approval memoranda document Shariah, legal, accounting, and risk assessments
  • Model governance specifies validation, change control, and periodic performance review
  • Dashboard prototypes combine liquidity, FX, counterparty, and profit-rate indicators
  • 90-day application plan prioritises control improvements, owners, milestones, and evidence

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. 13-week Islamic treasury cash-flow forecast template
  2. Treasury liquidity stress-testing scenario library
  3. Islamic money-market product assessment checklist
  4. Treasury counterparty limit and collateral matrix
  5. FX and profit-rate exposure reporting dashboard
  6. 90-day treasury risk control improvement plan

Who should attend

  • Treasury Managers — need Shariah-compliant funding, investment and liquidity management methods
  • Treasury Dealers — require practical controls for Islamic money-market, FX and sukuk transactions
  • Risk Managers — need methods for measuring treasury exposures and setting effective limits
  • Islamic Banking Product Managers — need to assess product structures, risks and approval requirements
  • Finance Managers — need reliable liquidity, valuation and risk-reporting inputs from treasury
  • Shariah Governance and Compliance Officers — need to review treasury structures and non-compliance controls

Skills and tools covered

Islamic liquidity managementTreasury product structuringForeign exchange riskCounterparty credit assessmentProfit-rate risk measurementTreasury risk reporting

Tools and standards

AAOIFI Shariah Standards, IFSB-12 Guiding Principles on Liquidity Risk Management, Basel III Liquidity Coverage Ratio and Net Stable Funding Ratio, IIFM Tahawwut Master Agreement

How the course runs

Training methodology

The course uses short instructor briefings to establish product mechanics, Shariah requirements and risk measurement methods. Participants analyse treasury cases involving wakalah placements, commodity murabaha funding, sukuk investments, FX settlement and liquidity stress. Small-group work applies cash-flow forecasting, limit-setting, exposure measurement and control design techniques. Simulations examine funding shocks, market movements and counterparty incidents. Facilitated application planning helps participants adapt templates and controls to their own treasury operating model.

Requirements and prerequisites

This intermediate course assumes familiarity with core banking products, financial statements, cash-flow concepts and basic financial risk terminology. Participants should have at least one year of experience in treasury, risk, finance, Islamic banking operations, audit, compliance or a related control function. Familiarity with Islamic finance principles is useful, particularly riba, gharar and Shariah governance, but specialist product-structuring experience is not required. Participants do not need quantitative modelling software, prior derivatives trading experience or detailed knowledge of Arabic contract terminology.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants should understand basic banking, cash flow, financial risk and Islamic finance concepts. The course explains specialist treasury structures, so prior experience with derivatives or sukuk trading is not required.

Bring a laptop if possible, along with any non-confidential treasury policies, liquidity reports or product approval documents that would help personal application. Course materials and templates are provided.

It is designed for professionals in treasury, risk, finance, Islamic banking operations, product management, audit, compliance and Shariah governance. It is particularly relevant for teams managing Islamic bank liquidity, investments and market exposures.

General treasury courses usually focus on conventional deposits, loans, derivatives and money markets. This course examines Islamic treasury contracts, Shariah governance, ownership requirements, Islamic liquidity instruments and permitted hedging arrangements.

Participants can use the forecasting, limit, stress-testing and control templates to review their current treasury process. The final application plan identifies actions, owners, milestones and evidence for implementation.

Each day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The five days progress from governance and liquidity through products, market risks, reporting and implementation planning.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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