OPERATIONAL RISK MANAGEMENT OF AN INDEPENDENT ISLAMIC BANK

Abstract

Risk is always be an obstacle to achieving the goals of companies and financial institutions,
both of conventional and sharia. It has become a necessity for every company and financial institution
to have a good risk management system so be able to manage existing risks in order to avoid losses, but
the application of risk management carried out by Islamic banks certainly has a very high complexity
and needs to be deepen. This study uses a qualitative descriptive approach with purposive sampling of
reports on the implementation of BSM operational risk management and the efforts made to mitigate
risk in 2016-2019. Syari'ah Mandiri Bank has the aim to create sustainable company growth through the
optimization of Good Corporate Governance (GCG). Based on the Risk & Control Self Assessment (RCSA)
assessment, operational risks that occurred in BSM from 2016 to 2019 have been successfully managed well
with the average impact rating low moderate - moderate and average frequency level 2 (The possibility of
an event occurring in a 12 month period of less than 20%), this shows that achievement of the application
operational risk management that has been very well done by Syari 'ah Mandiri Bank.