There are various risks faced by the Sukuk industry, namely market risk, credit and counterparty risk, Shari’ah compliance risk, operational risk and institutional rigidity. This chapter will consider the challenges facing the management of financial risks of Sukuk for institutional reorganisation. In addition, it will look at the argument that most Sukuk implementation does not follow Shari’ah rules. Undesirable risks affect the competitiveness of the pricing of assets. Therefore, the innovation of Sukuk essentially involves a higher exposure to certain market and financial risks.