<![CDATA[Introduction: The high rate of Non-Performing Financing (NPF) at Sharia rural banks (BPRS) in the last five years (2021-2025) reaching 10,36% in 2025, indicates that the technical and administrative risk management approaches implemented so far have not been fully effective in addressing the problem of problematic financing Methods: This study employed a qualitative approach, employing literature studies and analyzing secondary data published by the Financial Services Authority. Results: The findings indicate that Islamic Business Ethics (IBE) strengthens financing risk mitigation in BPRS through three main mechanisms: (1) preventing moral hazard by internalizing trust, honesty (ṣidq), and responsibility; (2) Strengthening Management and Employee Integrity and increasing contract transparency through clarity and fairness while avoiding gharar; and (3) Sharia-Based Risk Culture Formation and strengthening partnership-based relationships based on taʿāwun and distributive justice. Thus, IBE functions not only as a normative-ethical principle, but as a strategic and preventive behavioral risk control mechanism that complements conventional risk management and supports sustainable financing quality and institutional stability in BPRS. Conclusion and suggestion: BPRS needs to integrate Islamic Business Ethics values more systematically into their financing risk management policies. Internalizing the values of trustworthiness, honesty, and responsibility is not sufficient if outlined solely in a code of ethics; it needs to be reinforced with an ethics-based monitoring and performance evaluation system.]]>
