Purpose – The purpose of this paper is to provide an insight into the differences in the risk management practices of Islamic financial institutions (IFI) and conventional financial institutions (CFI) in Pakistan. Design/methodology/approach – The study makes use of primary data collection...

Purpose – The purpose of this paper is to report empirical evidence regarding the risk management practices of banks operating in Bahrain. Design/methodology/approach – A sample of bankers was surveyed through a questionnaire and the results used to examine if the risk management practices...

Purpose – The purpose of this paper is to derive an easy-to-implement and highly accurate formula to approximate the change in the bond price resulting from a change in interest rates. Design/methodology/approach – The bond price is raised to an infinitesimal power and the Taylor series...

Purpose – The purpose of this paper is to show that the duration-based hedge ratio has many serious defects: first, the yield-to-maturity is not the market interest rate, and it cannot even serve as a proxy for the market interest rate. Second, it is difficult to choose an appropriate bond for...

Purpose – Interest rate risk immunization is one of the key concerns for fixed income portfolio management. In recent years, the affluence of new risk measures has emphasized the importance of comparing them with the classic approaches. As a result, one question arises: what is the relation...

Purpose – This paper aims to examine the state of risk management practices among Malaysian listed firms and evaluates the value-relevance of the notional amount of foreign-exchange and interest-rate derivatives (FCDs) used by listed firms over the period 2003-2007. Design/methodology/approach...

Purpose – The purpose of this paper is to evaluate the degree to which Islamic banks in Pakistan use risk management practices (RMPs) and techniques in dealing with different types of risk. Design/methodology/approach – A standardized questionnaire is used which covers six aspects:...