Risk" is widely used to explain an event pertaining to the probability of an outcome to occur. This paper provides the review of risk from its origin, where the concept of risk has been a concern for humanity since days of old, without the usage of its proper terminology. The study relies solely on related literature and highlights the application of risk in Islamic finance. Reviews of previous studies normally have its own terminology in research methodology. This section covers the issues of how risk is defined by researchers in various disciplines and therefore, how it is specifically related to Islamic finance through a generic and unique name, that is, Shariah risk. The major issue highlighted is where the sources are, which led to a deviation from the path that creates harmful effects. There are other sources for the risk that still need to be clarified further, but this study revealed the sources that lead to the changes of circumstances which result in having risks, based on the Quranic evidences in Islamic perspective. Hence, this paper aims to fill the gap of the current literature by showing the need to conduct further research on the derivation of Shariah risk and its potential in determining capital requirements in Islamic financial institutions.

Purpose This paper aims to propose a derivation of Shariah risk from both the Islamic finance theory and theory of contracts in Islamic law. Specifically, it deliberates the derivation of Shariah risk following the contracts validity and apprises the readers of the Shariah risk issues currently under debate. Design/methodology/approach This study reviews the relevant literature and presents an analysis of contract rulings through evidence derived from the Qur’an, Hadith and other secondary sources of Islamic law. Various theories of Islamic finance and Islamic law of contracts are identified, to examine the general principles and essential elements and conditions of a valid contract. Findings This analysis asserts that any circumstances that may render invalidity of the contract will trigger Shariah risk. More importantly, this paper highlights the implications of invalid contracts, based on the opinion of Hanafi jurists, who concluded that Shariah risk may be derived from any void or voidable contracts due to the failure of the contractual parties to comply with Shariah contractual obligations. Research limitations/implications This paper emphasises the derivation of Shariah risk over theoretical approaches. It does not include an explanation in the form of any empirical model. Originality/value This is the first study that contributes to the field of derivation of Shariah risk, based on the theory from the Islamic law of contracts.

The family Takaful sector has evolved into an important part of Malaysia's broader Shariahcompliant financial system. However, the market penetration for family Takaful lags behind that of the conventional life insurance, presenting significant business opportunities. This issue, as well as the question of what factors can encourage people to join the family Takaful, must be addressed and investigated. Hence, this paper aims to propose a conceptual framework to study the relationship between innovation attributes and loyalty in family Takaful from the perspective of customers in Malaysia. Trust was added in this research to function as the mediating variable. Apparently, the framework suggests that innovation attributes has positively affected the loyalty in family Takaful. Considering trust as a catalyst in the relationship, its mediating effect will be investigated. From the review of the literature, hypotheses were developed to suggest the relationship between the innovation attributes, trust, and loyalty by choosing the family Takaful customers in Malaysia as the research sample. The findings of this research are expected to provide new ideas for the representative such as Takaful operators and marketing managers from the Takaful industry to increase loyalty through an appealing package of innovation attributes in designing better family Takaful products and services.

The impact of COVID-19 becoming more serious for most of the people as they are facing challenges in sustaining their financial and emotion stability. Muslims find it even more difficult due to the distractions to perform worship in the mosque during the previous period of Movement Control Order (MCO). The objectives of this study were (1) to examine the level of spiritual well-being and the level of depression, anxiety and stress among Muslims during previous MCO.; (2) To test the relationship between spiritual well-being and psychological distress among Muslim people during previous MCO. This was a non-experimental quantitative research involving 133 respondents of Muslim people who lived in Terengganu, Malaysia during previous MCO. A set of survey questions consisting of demographic information, the Spiritual Well-Being Scale (SWBS) and the Clinical Scale for Depression, Anxiety and Stress (DASS-21) were used in this study. Mean descriptive statistics were used to see the level of spiritual well-being and depression, anxiety and stress of the respondents, and correlation analysis was employed to identify the relationship between spiritual wellbeing and psychological distress among respondents. The findings show that the level of spiritual well-being as well as depression, anxiety and stress among Muslims in Terengganu during previous MCO was at moderate level. There was a negative relationship between spiritual well-being and depression, anxiety and stress (r= -0.103, n=131, p<0.01). This indicates that Muslim people in Terengganu during previous MCO were not much affected from the psychological aspect nor spiritual well-being. However, indeed spiritual well-being play it roles in controlling the depression, anxiety and stress even though many constraints had to be faced such as the limitation of spiritual activities in the mosque and so on. It is

The purpose of this study is to investigate the performance of Peninsular Malaysia's single mother co-operatives. This study mainly examines the number of active and inactive co-operatives and identifies the key factors influencing their success or failure. The research evaluated 23 co-operative groups of single mothers. The performance of the cooperatives was analysed through in-depth interviews with officers of the Malaysian Co-operative Societies Commission (MCSC). Despite the government's financial and non-financial assistance, the findings indicate that cooperatives have not performed well. The preliminary results suggest that inactive single mother co-operatives are higher than those active ones. This study found that 61% of the total single mother co-operatives in Peninsular Malaysia are inactive (dormant and non-operational) compared to 39% active ones. Four influencing factors contribute to a higher percentage of inactive co-operatives: limited resources, dependence on subsidies and sponsors, managerial incompetency, and member participation. The results suggest solutions for the management of single mother co-operatives and provide additional information and contribution to the parties involved to empower the association to fulfil the economic, social, and cultural requirements.