This study aims to analyze the operational risk management of zakat institutions in responding to crises, using the modified Committee of Sponsoring Organizations of the Treadway Commission Enterprise Risk Management (COSO ERM) model.
This research adopts a case study approach of National Zakat Institutions (BAZNAS) from 2020 to 2023 to assess operational risk management during and after the COVID-19 pandemic. It is a descriptive study using data collected through questionnaires, interviews and documentation. The modified COSO ERM framework is applied to evaluate risk levels and mitigation measures by comparing the crisis and postcrisis periods.
During the crisis, no extreme risks were identified; however, there were 2 high-level risks, 46 medium-level risks and 12 low-level risks. The most significant challenge during the crisis was the constrained distribution of zakat funds due to activity restrictions. Postcrisis analysis revealed 1 extreme risk related to program development, 40 high-level risks and 19 medium-level risks. Postcrisis risks also emerged in zakat fund management, including potential misuse by recipients or related parties.
These findings highlight how zakat institutions managed operational risks during and after the COVID-19 pandemic.
This study introduces a modified COSO ERM approach developed by PUSKAS BAZNAS, specifically tailored to assess operational risks in zakat institutions at the national level, providing valuable insights and references for other zakat organizations seeking to mitigate risks effectively.
