CREDIT RISK MANAGEMENT IN TAKAFUL INDUSTRY IN THE KSA

Abstract

Risk needs to be addressed promptly as it affects the return that is associated with it. Credit risk is one of the types of risk, and its management is highly efficient in different industries. The achievement of credit risk by executives requires the support of legitimate acknowledgement of opportunity conditions along with appropriate credit methodologies and approaches.  In accordance, this study focuses specifically on Takaful (insurance company) in Saudi Arabia. The aim of the study is to provide a framework for the management of credit risk in Takaful (insurance company) by studying and analyzing various measures to control credit risk. The methodology used will be of a qualitative nature as a result of the literature analysis carried out in the study. The results concluded that the various credit risk management systems in Takaful have enabled the Saudi Takaful industry to be safe by the various credit verification procedures, which are adapted before trading. Such policies of credit risk management are helpful to the Saudi Takaful industry in terms of financial strength