This research examines the implementation of financing risk mitigation in Islamic banking in Indonesia by analyzing the performance of Islamic Commercial Banks (BUS) and Islamic Business Units (UUS). The research analyzes relevant indicators in Islamic banks such as Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Return on Assets (ROA) to measure the health level of Islamic banks and the effectiveness of financing risk mitigation from both juridical and sharia perspectives. It also compares financing risk management in the form of Provisions for Impairment Losses (CKPN) between Islamic Commercial Banks (BUS) and Islamic Business Units (UUS). The research aims to analyze the implementation of financing risk mitigation, identify the legal framework governing it, and evaluate the compatibility of risk mitigation practices with sharia principles. The research employs a qualitative method with a normative juridical approach. Data collection was conducted through literature review and documentation. Data analysis used NVivo 12 Pro software to organize and categorize data systematically. Research findings indicate that the implementation of financing risk mitigation in Islamic banking has a strong juridical foundation through various regulations, including Laws, Financial Services Authority Regulations (POJK), Financial Services Authority Circular Letters (SEOJK), Bank Indonesia Regulation (PBI), and National Sharia Board-Indonesian Ulema Council (DSN-MUI). However, in practice, some Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) have not optimally performed their duties in accordance with existing policies. The research identifies areas requiring improvement, particularly in the mechanisms for handling problematic financing in line with sharia principles. It recommends strengthening more comprehensive regulations and enhancing human resource competencies to understand juridical and sharia aspects related to financing risk mitigation.