By observing honesty and just behaviour. There should be declaration of true profits and accounts open to all at all times. System should be equity oriented.

This has been dealt with in a comprehensive manner in relevant guidelines of the Islamic Financial Services Board (IFSB).

For the full text of the GUIDING PRINCIPLES OF RISK MANAGEMENT FOR INSTITUTIONS (OTHER THAN INSURANCE INSTITUTIONS) OFFERING ONLY ISLAMIC FINANCIAL SERVICES, kindly visit:

http://www.ifsb.org/standard/ifsb1.pdf

You can read a short article describing risk management is Islamic banking at: https://islamiceconomicsproject.wordpress.com/2014/09/10/risk-management-tools-in-islamic-banking/

Risk Management Practices in Islamic Bank: A Case Study of Islami Bank Bangladesh Limited

Working Paper Risk Management Practices in Islamic Bank: A Case Study of I...