Shariah Solutions identifies Shariah non-compliance risks on the management level and the product level (pre-implementation and post implementation).
Mainly the Shariah risks can be divided in three categories:

• Operational risk: an operation can be labelled as non-Shariah compliant due to a structuring or implementation mistake - this risk is mitigated by consistent Shariah auditing
• Reputational risk: an entity structuring or marketing a product or a fund which its compliance with Shariah is questionable may find itself as labelled as non-Shariah compliant by the market participants.