THE PRINCIPLE OF AL-GHURM BIL GHONM IN RISK SHARING: MITIGATING SYSTEMIC RISKS FOR A MORE STABLE GLOBAL FINANCIAL SYSTEM
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October 8, 2025
April 30, 2026
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Al-ghurm bil Ghonm, Risk Sharing, Systemic Risk
Abstract
Persistent instability in global financial systems has exposed structural weaknesses rooted in excessive leverage, speculative behavior, and risk-transfer mechanisms that disconnect liability from return. Recurring financial crises highlight the limitations of conventional models in maintaining systemic resilience and ethical accountability. The study aims to examine the principle of al-ghurm bil ghonm as a foundational risk-sharing mechanism and to evaluate its potential in mitigating systemic risks within contemporary financial systems. A qualitative analytical design is employed through an integrative review of scholarly literature, policy documents, and institutional reports related to risk-sharing, Islamic finance, and financial stability. The analysis is conducted using thematic coding, conceptual mapping, and comparative evaluation to construct a coherent framework linking risk allocation structures with systemic resilience. Findings indicate that financial systems incorporating risk-sharing principles demonstrate lower vulnerability to crises, improved incentive alignment, and enhanced transparency. Evidence further reveals that al-ghurm bil ghonm enforces proportional risk-bearing, reducing moral hazard and speculative excess. The study concludes that integrating risk-sharing principles into global financial architectures offers a viable pathway toward greater stability and sustainability. Alignment between ethical frameworks, regulatory support, and institutional design emerges as a critical factor in operationalizing this principle, providing strategic insights for financial reform and policy development.
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Copyright (c) 2026 Faisal Umardani Hasibuan, Amin Zaki, Sarah Williams
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