Application of the principles of Shari'ah in microfinance institutions operating systems inevitably affected the psychological impact of the comprehensive nature of Islamic Shari'ah in its implementation . Conventional Cooperative who incidentally coined by Robert Owen , in pencetusanya in Indonesia tries in sync with Sharai corridors by Mohammad Hatta . But in its development suffered a lot due to the reduction of the value of the mainstream development of the capitalist economy .
The development of an Islamic economic system is expected to bring a new paradigm in the world of cooperatives . A discussion of the cooperative ( sirkah ta'awuniyah ) , or sirkah generally prescribed by the Qur'aan , Sunnah and ijma ' .
In the Qur'aan , Allah says which means :
" So they allied in the third. "
( Q. S. 4 : 12 )
" And truly, most people associate the most they do wrong to others , except those who believe and work righteous ; Very few , and they were . "
( Q. S. 38 : 24 )
In the Sunnah , the Prophet SAW said , which means : " Allah said : " I am the Third association of two people , as long as they did not betray one of his friends . If one has betrayed his friend I came out from among them . "
( Narrated by Abu Dawud from Abu Hurairah ) ,
Comparative study of the cooperative system and conventional Shari'ah did show quite significant differences . In the Islamic economic perspective , the division 's operating profit ( profit sharing ) based on equity participation with a variety of regulatory contract used ( Mudaraba , Musyaro'ah Musaqoh etc. ) . Whereas in conventional cooperative systems detentuan by the level of participation of its customers .
The use of contract - contract certainly has the potential risks that can be taken into account until the level is assumed rigid . As an example of the risks contained in the Mudaraba financing , especially on the applicability , relatively high , as follows :
a. Side streaming , customers not using the funds as referred to in the contract .
b . Negligent and willful misconduct .
c . Concealment of profits by customers , if customers are not honest .
( Antonio , 2000)
Financial instruments in financial institutions Shari'ah
In general , financial instruments in financial institutions shariah grouped into two groups , namely :
Financial instruments are intended to not make a profit ( non- business )
Financial instruments are intended to make a profit ( business )
( Mohammed , 2003)
Financial instruments that are not intended to benefit
done on the basis of contract kindness , such as : wadi'ah , power of attorney , kafalah , qardh , grants .
While financial instruments intended for financial gain ( business ) is done by contract basis : ( a) Based on the results yng kepastin obtained , ( natural certainty contracts ) and ( b ) the level of certainty berdasrakan results obtained (natural uncertainty contracts ) .
Natural certainty contracts / exchange theory , is in the contract business that provides certainty of payment , both in terms of quantity and time . In this form : ( a) That cash flow has been defined or agreed upon at the beginning of the contract . ( b ) Object pertukaranya also certainly in quantity, quality , time and price . This contract takes the form of purchase contract .
Natural uncertainty contracts / mixing theory is a business contract yng not provide certainty of income , both in terms of quantity and waktunya.Tingkat returnnya be positive , negative or zero . This investment contracts in this investment is sunatullah not offer : ( a) Return the fixed and definite ; ( b ) Its not fixed and predetermined . In this type of contract , the parties to a transaction of mutual mixing of its assets ( both real assets and financial assets ) into a single unit , and then run the risk together to benefit . In such contracts , the profit and kerugin be shared . Developed contract is a contract shirkah ( Musyarakahdan mudaraba ) .
The types of business risk / financial Shari'ah :
1 . Risk capital ( risk capital )
Another element of risk is the risk berhubungn with banking capital ( risk capital ) , which reflects the level of leverage , which is used by the institution of Islamic microfinance .
2 . credit risk
Credit risk arises if LKMI can not get back the principal repayments of loans or investments made
a. liquidity risk
Liquidity risk arises when LKMI experience an inability to meet the needs of funds ( cash flow ) immediately , and the corresponding costs , both to meet the needs of day-to- day transactions and to meet the urgent needs of funds . The size of the risk is determined by :
Accuracy of cash flow planning
The precision in regulating the structure of the funds , including funds sufficient non -sharing .
The availability of assets that can be converted into cash .
Ability to create access to the interbank market ( the financial institution shari'a) or other funding sources , including the lender of last resort facilities .
b . operational risk
Basle Committee defines operational risk as a result of the lack of ( deficiencies ) pengwasan information systems or internal systems that will result in unexpected losses ( Muhammad , 2003) . This risk is closely related to an error in humans ( human error ) , system failures and inadequate procedures and controls . Components are strongly associated with the risk operional namely :
Information systems ,
Internal monitoring ,
Human error ( human error ) ,
System failures , and
The inadequacy of the procedures and controls
In an Islamic financial institutions such as the Islamic Bank that is needed is : good governance , Transparency , and accounting . British Banker's Association in 1997 reported that 69 % of respondents stated that operational risk is more important than market risk and credit risk .
Examples of industry groups to apply risk management is the airline industry , petrochemical industry , and the military has uindustri operational risk management methods are well established , viable and tested .
Here is a list of terms used in operational risk management is as follows :
Hazard : the conditions that potentially lead to the loss and damage
Exposure : the sources are most likely caused by events that have already occurred , overtime or repetition of the same events
Probability : the likelihood that an event will occur
Risk: The likelihood of a hazard losses , calculated from kmungkinan and severity losses over a given period
Risk control : measures designed to reduce risk , such as changes in procedures , improvement of facilities , supervision ekstr and so on .
Risk management : rational decision making in the whole process of handlers risks , including a risk assessment as to membun action and implement risk control options .
Gambling: decision making without the risk assessment at the ratio or prudent risk management involvement .
By comparison , the United States Air Force ( U.S. Air Force ) using six -stage process that is clear and simple , namely :
Mengidentifiksi Moral Hazard
Hazard identification should be approached with due to personal experience can not be too unreliable and no one can do it yourself with success . " Think of errors that can occur , no matter how small the possibility. "
2 . assess risk
Next is to analyze the risks , what risks to be faced , how and how much likely ( estimate ) . The success of this stage depends on the quality of risk analysis and cost . Analysis can be performed bik both qualitatively and quantitatively , depending on the situation ( time , cost and capability ) and the interaction that occurs when two or more hazards occur together at once .
3 . Analyze the levels of risk oversight
Analyze the levels of risk oversight by using the risk assessment matrix to build the necessary levels of supervision . The Matrix combines the severity of the burden of risk and the possibility of hazard to level five . The risk level explain all the impact hazard associated with the operation :
Very high ( extremly high ) : loss of ability to complete the operation .
(High ) : loss of ability to meet the requirements of the standard operations .
Moderate ( medium ) : decline in the ability to fulfill the requirements of the standard operations .
Low (low ) : no ( little ) impact on the completion of the operation
Very low ( residual risk ) : the risk remaining after risk reduction efforts .
The levels of risk are derived from the matrix used is flexible and bervariaasi between one company with other companies , depending on the nature of the company's operations and willingness to accept risk . This should be formulated in the form of written policies by each bank ( financial institution ) . However there is no hard and fast rule , which must be applied are:
When you can not control the risk - hindarkanlah !
( Mohammed , 2000)
There are four levels of supervision in analyzing risks , namely :
Build risk oversight
That level of supervision yharus built to analyze the hazard and reduce risk . Once dibn risk oversight , the risk is evaluated until the risk can be reduced , until pda more useful level of potential cost daripadan tub .
Identifying risk oversight
Development of risk surveillance started by taking a predetermined risk level and identify as many risk control options which may be taken for all hazard melamp acceptable risk levels .
Determining the effectiveness of risk
The next process is to determine the effect of each control -related hazard .
Choosing a risk oversight
Supervision consistent with the best run with operational goals adn the optimal use of resources .
4.Membuat Decision Risk Oversight
hrus risk management decisions made early in the phase of planning , karen more easily integrate during the preparation of the plan rather than tucked in the final stages . The decision was made after carefully analyzing all aspects of the operation and should be done by the senior management responsible for risk management strategies for the analysis must be logical in consultation with all relevant elements or parties
5 . applying Supervision
The next stage is monitoring . In order to achieve success in the application of surveillance , was found to be an absolute necessity to get a comprehensive approach to public policy and operational sisiko must be strictly maintained to ensure integrity .
Management at all levels must be authorized to communicate all of the standards required to staff them and then apply them in their area of responsibility . Consequently , setiappernyataan related to risk management should be clear , practical and socialized .
6 . Supervision and Evaluation
Each program risk management, market risk or credit risk , should be sustainable (continue ) assessed and diperbarrui . For operational risk is dynamic and constantly changing , more than market risk and credit risk . Management's responsibility to ensure that minimum standards have been followed and the maximum achievable standards as closely as possible . When you find something that is not planned , then the program should be terminated and evaluated . Meanwhile , Paul Dorey of Barclays Bank stated that risk management is not just a possibility ( probability ) , but also the problem of information or lack of information .
Any investment in risky economic presence of assymetric informatian in the form of moral hazard (effort is unobservable ) and adverse selection ( the entrepreneur 's ethics are inherently unknown by investors he ) . For that risk management is needed to counter the assymetric information . To reduce the occurrence of assymetric information , then apply a cooperative sharia certain limitations when channeling financing to SMEs , namely :
restrictions that apply capital portion of the borrower ( mudharib ) or larger and wearing warranty . Necessary condition for this limitation include :
determination of the maximum value of the ratio of debt to capital
determination of collateral in the form of fixed assets
use of the guarantor
makers over the use of debt
applying the conditions for doing business mudharib lower operating risk . Kim and Sorensen (1986 : 131-144 ) developed a model of the empirical testing of the existence of the agency 's policy danhubungannya cos firms to undertake debt . Kim and Sorensen asserted , " Assuming that each firm makes the effort to resolve the agency cost of debt by adding some kinds of covenants bind , the agency cost of resolving efectiveness covenants may be a function of ownership structure . " This provision applied to limit the form :
determination of the maximum ratio of fixed assets to total assets
determination of the maximum ratio of operating expenses to operating income
Reduction in the Risk of failure microfinacing conducted by Cooperative Shariah
efforts to reduce the risk of failure in cooperative sharia can be done by applying a system that has been described above . With Mengidentifiksi Moral Hazard , Assess rumor , rumor control levels Analyze , Make Decisions Control Risks , Implementing Monitoring , Supervision and Evaluation
reduction in the risk of failure in cooperative sharia do.