The Impact of Risk Management Implementation on the Performance of Islamic Banks in Pasuruan

Abstract

This study examines the impact of risk management implementation on the performance of Islamic banks in Pasuruan. Risk management practices in Indonesian Islamic banking follow the standards established by the , which are adjusted to the capabilities and conditions of each bank. The requires these standards to be implemented by Sharia Commercial Banks (BUS) and Sharia Business Units (UUS) to ensure that banking operations and development remain aligned with Sharia principles. This research aims to determine whether the implementation of risk management significantly influences the performance of Islamic banks in Indonesia. The study employed an ex post facto research design with a quantitative approach. Data were collected through questionnaires, observations, and documentation, while the analysis techniques included validity testing, reliability testing, normality testing, linearity testing, and hypothesis testing using simple linear regression analysis. The findings reveal that risk management implementation has a significant positive effect on the performance of Islamic banks. The hypothesis testing conducted using SPSS 25 showed a significance value of 0.000 < 0.05 and a t-count value of 7.165, which exceeded the t-table value of 1.986. Furthermore, the R Square value of 0.363 indicates that risk management implementation contributes 36.3% to the performance of Islamic banks, while the remaining 63.7% is influenced by other factors not examined in this study. Therefore, the null hypothesis (Ho) is rejected and the alternative hypothesis (Ha) is accepted, confirming that the implementation of risk management significantly affects the performance of Islamic banks in Indonesia.