<![CDATA[The accelerating growth of Indonesia's Islamic banking sector, with sectoral assets reaching IDR 980 trillion by 2024, has rendered asset management a central determinant of both institutional sustainability and systemic stability. This study examines the asset management architecture of Indonesian Islamic banks and its analytical nexus with financing risk, with particular attention to the persistent Non-Performing Financing (NPF) ratio that hovers around two percent. Employing a qualitative descriptive approach grounded in systematic library research, the study synthesises evidence drawn from regulatory documents issued by the Otoritas Jasa Keuangan, peer-reviewed scholarship in Islamic finance, and statistical reports on Indonesian Sharia banking performance. Findings demonstrate that asset management performs the dual function of generating revenue through productive assets while maintaining the liquidity buffers required for institutional resilience. Three categories of risk emerge as analytically distinctive in the Islamic banking context: default risk, rate-of-return risk, and equity-investment risk, each grounded in the asset-backed nature of fiqh muamalah. The structural distinction between productive and consumptive financing carries differential risk implications, with productive financing through mudharabah and musyarakah exposing banks to deeper performance-sensitivity than consumptive financing through murabahah and ijarah. The integration of asset management with comprehensive risk governance, particularly through the Asset-Liability Management framework and the prudential 5C analysis adapted to Sharia-compliant evaluation, emerges as the principal pathway to sustained sectoral health. This synthesis contributes to the literature by establishing the analytical interdependence between asset structure and financing-risk quality, a relationship inadequately treated in prior Indonesian scholarship that has tended to examine these dimensions in isolation]]>
