Developing a Framework of Risk Management in Digital Zakat Collection: A Preliminary Study

Abstract

There is a recognised need for establishing the framework of risk management in digital zakat collection. This topic is important given the recent practice in Zakat institution which has been engaging with technology in collecting zakat fund, yet there was no study been done to develop the outline in controlling and managing the risk caused using technology in Zakat fundraising. In this study, the framework of risk management in digital zakat collection is introduced. The discussion begins with the elaboration of risk itself, followed by the general structure of risk management for zakat institution. The developed framework in this study refers to the unpublished work by Prof Dr Bambang Sudibyo, the Chairman of the National Board of Zakat, Republic of Indonesia (BAZNAS). This paper is the first study to develop the outline of risk management in collecting zakat with digital technology. The discussion is relevant to both academics and industry professionals of zakat institution.