Abstract: this paper is aimed at discussing the notion of endowment as a form of investment.
Like any other kinds of investment, endowment needs a proper management especially that
which is related to risk. Hence, the subject of this paper is risk management for money
endowment, i.e., endowment in the form of money. A lack of proper management will certainly
lead to the unsuccessful investment such as the ineffective cash-flow which occurs as a result of
inflation. The paper argues that the unsuccessful endowment is often the victim of its own
ineffective management, or else of its inefficient managers. Many endowments have no managers
and management, the result of which being that it cannot be sustained and made use of. While
the Syari’ah banking has improved dramatically in many Muslim countries, and has been run
professionally, the paper asks, why is it not the case with the endowment sector?
Keywords: nazhir, risk management, corporate governance