Risk Mitigation on Management Institutions

This study aims to analyze operational risk using a modified COSO enterprise risk management approach and develop risk mitigation efforts in zakat management organizations in Region III Cirebon. Risk in the context of zakat institutions is a potential event that can have a negative impact on the level of trust and continuity of business processes. This study used a mixed methode approach. Data was collected by means of interviews and distributing questionnaires to nine respondents. Description analysis using the modified COSO Enterprise Risk Management framework and heat map matrix is carried out to determine the level and risk mitigation in the zakat management organization. The results of the study indicate that in government zakat institutions there is a high risk in the management of productive funds, information technology network structure, and competition. Meanwhile, in non-governmental zakat institutions, there is a high risk of information technology network structure and crime. Mitigation of productive funds by building the right concept of revolving funds and program evaluation, coaching for zakat recipients. Mitigation related to the structure of the information technology network is by building an effective central database system for zakat recipients. Mitigation related to competition by improving the performance of institutions and human resources. Mitigation related to crime risk is through internal audit.