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ABSTRACT:

This paper analyzes Indonesian Islamic banks' risk management and market share. The mixed-methods research includes a comprehensive literature review and a qualitative case study of three of Indonesia's major Islamic banks. The case study finds that risk management best practices helped the chosen Islamic banks prosper. These steps include some common practices such as diversification of the financing portfolio, efficient internal control systems, and strict compliance with Shariah principles. Additionally, the study suggests that the implementation of risk management practices should be tailored to the specific needs and characteristics of each Islamic bank. practices such as diversification of investment portfolios, strict adherence to Shariah principles, and the use of advanced risk management tools and techniques. Additionally, the study suggests that effective risk management can enhance the reputation and credibility of Islamic banks in the eyes of their stakeholders. Getting up a department for risk management, integrating risk management, and making the organization's risk culture stronger This study emphasizes risk management's role in Indonesia's Islamic banking's long-term growth. By tackling risk management challenges and creating solid risk management methods, Indonesian Islamic banks can enhance their performance, increase their market share, and help grow a vibrant Islamic banking industry

KEYWORDS:

best practices, challenges sustainability, Indonesia, Islamic banking, risk management

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