The Effectiveness of Non-Performing Loan Risk Management Strategies at BSI KCP Surabaya Rungkut 1: Implementation of the 5C+1S Principle

Abstrak

Ideally, the disbursement of financing by Islamic financial institutions should be carried out through prudential principles and thorough risk analysis to avoid the potential for non-performing loans. An effective risk management strategy is expected to maintain financing quality and ensure the healthy and sustainable operation of the bank. However, the reality in the field shows that non-performing loans remain a significant issue, including in the Mitraguna financing product at BSI KCP Surabaya Rungkut 1, indicating ongoing challenges in reducing problematic financing. This study aims to analyze the effectiveness of non-performing loan risk management strategies through the application of the 5C+1S principles (Character, Capacity, Capital, Condition, Collateral, and Sharia Compliance) in the Mitraguna product at BSI KCP Surabaya Rungkut 1. This article falls under field research with a qualitative approach, using a case study methodology. The results of the study conclude that the 5C+1S strategy in managing non-performing loan risks at BSI KCP Surabaya Rungkut 1 has proven to be fairly effective through the selective and procedural application of character, capacity, collateral, and sharia compliance analysis. This effectiveness depends on the quality of human resources and consistency of implementation, supported by technology and customer education to ensure sustainable and sound financing.