Journal of Education Transportation and Business
Vol 2, No 1 (2025): Juni 2025

The Role of The Sharia Supervisory Board in Risk Mitigation in Islamic Financial Institutions

Hendra, Joni (Unknown)
Ghafar, Abd (Unknown)
Cahnawawi, Safuan Tri (Unknown)
Sholatullah, Sholatullah (Unknown)



Article Info

Publish Date
20 Jun 2025

Abstract

The Sharia Supervisory Board (SSB) plays a critical role in ensuring the compliance of Islamic financial institutions with Sharia principles. Beyond its function as a compliance authority, the SSB also contributes significantly to risk mitigation within Islamic financial institutions. This study explores the strategic role of the SSB in identifying, assessing, and minimizing Sharia-related and operational risks. The presence of the SSB ensures that all financial products, services, and operations adhere strictly to Islamic law, thereby preventing reputational and legal risks. Additionally, the SSB’s involvement in governance, product structuring, and continuous auditing enhances transparency and promotes stakeholder trust. The findings highlight that an active and competent Sharia Supervisory Board not only strengthens the ethical foundation of Islamic finance but also enhances overall risk management and organizational resilience.

Copyrights © 2025






Journal Info

Abbrev

jetbus

Publisher

Subject

Economics, Econometrics & Finance Education Transportation

Description

JETBUS Journal of Education Transportation and Business dengan nomor ISSN terdaftar 3062-813X (Cetak - Print) dan 3062-8121 (Online - Elektronik) adalah jurnal akses terbuka ilmiah yang diterbitkan oleh CV Rayyan Dwi Bharata. JETBUS Journal of Education Transportation and Business bertujuan untuk ...