Masrifah, Atika (2020) Technical Note on Risk Management for Zakat Institution. In: Technical Note on Risk Management for Zakat Institution. National Board of Zakat of the Republic of Indonesia (BAZNAS), pp. 1-30.

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Abstract

The International Working Group on Zakat Core Principles, in an effort to guide zakat towards an effective and efficient zakat operation, published a consultative document for Zakat Core Principles (ZCP) which was officially launched on May 23-24, 2016 during the UN Humanitarian Summit in Istanbul, Turkey. The document, Core Principles for Effective Zakat Supervision, provides a brief description about the foundation of zakat operations and system. Also, the ZCP covers all regulatory aspects relating to the zakat that promote effective zakat operations. In the Core Principles for Effective Zakat Supervision, the major issues in zakat were identified and grouped into six main themes: (a) legal foundations; (b) zakat supervision; (c) zakat governance; (d) intermediary function; (e) risk management; and (f) Sharī’ah governance. These themes in zakat management require further research and guidance from the regulatory perspective. This technical note is intended to establish standards and guidelines in the area of risk management4, for the direction and guidance of zakat institutions as well as zakat supervisors. This document discusses how management of risks inherent in zakat institutions should be implemented.

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