Analysis of operational risk management on BankZiska financing institution of Ponorogo branch

Abstract

This study aims to analysed operational risk management on BankZiska financing institution located in Ponorogo. Bank Ziska, a program of east java province LAZISMU is a typical implementation of productive zakat distribution. This paper uses qualitative method with case study approach to investigate the existence of risk management with Ponorogo branch BankZiska as the research object. To be specific, they are the operational activities of fund distribution to the clients named as partner in this institution. While the subject of the research is the managers and volunteers of Ponorogo branch BankZiska, the data used is a primary data, which is the results of interview with the so-called research subjects. Narrative explanation method is employed in data analysis. This study found that compliant risk and human risk are at red level, meaning it requires higher risk evaluation than other risk types. Ponorogo branch BankZiska respond the two types of risk by increasing their human resource quality. Operational risk management is an effective organizing to decrease the emergence of potential operational risk.