IMPLEMENTATION OF RISK MANAGEMENT IN EFFORTS TO PREVENT PROBLEMATIC FINANCING IN SHARIA BANKS

Abstrak

The purpose of this study is to find out how the application of risk management in an effort to prevent problem financing in Islamic banks. This study uses a qualitative method with a descriptive approach. The data collection method used is library research. The results of the study show that Islamic banks apply 5C analysis before a customer takes financing to see whether the customer is eligible or not given financing by the bank. To prevent or minimize the occurrence of problem financing, banks carry out effective risk management with several implementations, including; risk identification, risk measurement, risk monitoring, and risk control. With the implementation of this risk management, the bank can reduce the amount of non-performing financing in the bank.