The ANALYSIS OF OPERATIONAL RISK MANAGEMENT AT THE SIDOGIRI ZAKAT MANAGEMENT INSTITUTION

Abstract

This study aims to identify risks, impacts, know the level of risk and formulate operational risk mitigation efforts on LAZ Sidogiri using Enterprise Risk Management (ERM) method. The operational risk of LAZ Sidogiri identified in this study is 190 risks that are divided into 14 risk groups (Collection Fund Risk, Productive Fund Risk, Allocation Fund Risk, Collection Management Risk, Fund Management Risk, Allocation Management Risk, Network / IT Infrastructure Risk, Partnering Risk , Program Development Risk, Leadership Risk, Competition Risk, Crime / Fraud Risk, Sharia Compliance Risk, Regulatory Compliance Risk). The operational risk level of LAZ Sidogiri consists of 29 high, 130 moderate and 31 low. The risk collecting and risk management of funds dominate the high risk level, so LAZ management of Sidogiri should pay attention to the Amil performance improvements, design and implement better collecting and management systems along with stakeholders need to develop better SOM and SOP according to the LAZ character and apply them as LAZ policy. Network / IT Infrastructure Risks dominate the highest rate of speed of onset. Consequently maintenance routine IT facilities as well as periodic data backups and backup server procurement should be the concern of LAZ Sidogiri management.