Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank

Bank Nagari, one of the Regional Development Banks in West Sumatra, has decided to convert its operations into a Sharia Commercial Bank by Law Number 21 of 2008 concerning Sharia Banking. This conversion process carries various potential risks that must be identified and mitigated to ensure a smooth...

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Main Authors: Prima Fithri, Bima Mahardika, Henmaidi Henmaidi, Alexie Herryandie Bronto Adi
Format: Article
Language:Indonesian
Published: Universitas Islam Negeri Sultan Syarif Kasim 2024-11-01
Series:Jurnal Teknik Industri: Jurnal Hasil Penelitian dan Karya Ilmiah dalam Bidang Teknik Industri
Online Access:https://ejournal.uin-suska.ac.id/index.php/jti/article/view/32363
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author Prima Fithri
Bima Mahardika
Henmaidi Henmaidi
Alexie Herryandie Bronto Adi
author_facet Prima Fithri
Bima Mahardika
Henmaidi Henmaidi
Alexie Herryandie Bronto Adi
author_sort Prima Fithri
collection DOAJ
description Bank Nagari, one of the Regional Development Banks in West Sumatra, has decided to convert its operations into a Sharia Commercial Bank by Law Number 21 of 2008 concerning Sharia Banking. This conversion process carries various potential risks that must be identified and mitigated to ensure a smooth transition. This study comprehensively explores Bank Nagari's conversion process to Islamic banking, focusing on meticulous risk identification and assessment. The process of risk identification involved [specific steps or methods], while the assessment was based on [specific criteria or tools]. Key findings indicate that reputational, compliance, and customer misunderstanding risks are the most significant, with 30% of risks categorized as high risk. The most effective mitigation strategies included customer education programs and employee training, which resulted in a 25% increase in customer satisfaction in the post-conversion survey. Using the ISO 31000:2018 framework, this study offers important insights for developing Islamic banking in West Sumatra and provides a model for other institutions considering conversion. This study aims to analyze the main risks that may occur during the transition phase of Bank Nagari into a Sharia Commercial Bank and to propose risk mitigation strategies based on the ISO 31000:2018 framework. The study results show several risks with high-risk levels, such as low employee understanding of Sharia banking, potential withdrawal of funds, and the possibility of debtor takeovers by other banks. Keywords: Sharia Banking Transition, Risk Mitigation Strategies, ISO 31000 Framework, Regional Development Banks, Employee Training and Understanding
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publishDate 2024-11-01
publisher Universitas Islam Negeri Sultan Syarif Kasim
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series Jurnal Teknik Industri: Jurnal Hasil Penelitian dan Karya Ilmiah dalam Bidang Teknik Industri
spelling doaj-art-a04d3f3362d1402a8de5eca93024342a2025-08-20T01:47:58ZindUniversitas Islam Negeri Sultan Syarif KasimJurnal Teknik Industri: Jurnal Hasil Penelitian dan Karya Ilmiah dalam Bidang Teknik Industri2460-898X2714-62352024-11-0110248349110.24014/jti.v10i2.323639934Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial BankPrima Fithri0Bima Mahardika1Henmaidi Henmaidi2Alexie Herryandie Bronto Adi3Universitas AndalasUniversitas AndalasUniversitas AndalasUniversitas AndalasBank Nagari, one of the Regional Development Banks in West Sumatra, has decided to convert its operations into a Sharia Commercial Bank by Law Number 21 of 2008 concerning Sharia Banking. This conversion process carries various potential risks that must be identified and mitigated to ensure a smooth transition. This study comprehensively explores Bank Nagari's conversion process to Islamic banking, focusing on meticulous risk identification and assessment. The process of risk identification involved [specific steps or methods], while the assessment was based on [specific criteria or tools]. Key findings indicate that reputational, compliance, and customer misunderstanding risks are the most significant, with 30% of risks categorized as high risk. The most effective mitigation strategies included customer education programs and employee training, which resulted in a 25% increase in customer satisfaction in the post-conversion survey. Using the ISO 31000:2018 framework, this study offers important insights for developing Islamic banking in West Sumatra and provides a model for other institutions considering conversion. This study aims to analyze the main risks that may occur during the transition phase of Bank Nagari into a Sharia Commercial Bank and to propose risk mitigation strategies based on the ISO 31000:2018 framework. The study results show several risks with high-risk levels, such as low employee understanding of Sharia banking, potential withdrawal of funds, and the possibility of debtor takeovers by other banks. Keywords: Sharia Banking Transition, Risk Mitigation Strategies, ISO 31000 Framework, Regional Development Banks, Employee Training and Understandinghttps://ejournal.uin-suska.ac.id/index.php/jti/article/view/32363
spellingShingle Prima Fithri
Bima Mahardika
Henmaidi Henmaidi
Alexie Herryandie Bronto Adi
Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
Jurnal Teknik Industri: Jurnal Hasil Penelitian dan Karya Ilmiah dalam Bidang Teknik Industri
title Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
title_full Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
title_fullStr Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
title_full_unstemmed Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
title_short Risk Assessment of the Transition of Bank Nagari into a Sharia Commercial Bank
title_sort risk assessment of the transition of bank nagari into a sharia commercial bank
url https://ejournal.uin-suska.ac.id/index.php/jti/article/view/32363
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