REPUTATIONAL RISK MITIGATION STRATEGIES FOR ISLAMIC BANKS IN THE DIGITAL ERA

This study aims to analyze reputation risk mitigation strategies for Islamic banks in the digital era using a descriptive qualitative approach, using a case study of the service disruption at Bank Syariah Indonesia (BSI) in 2023. The results indicate that Islamic banks' reputation is influenced by four main pillars: technological resilience, cybersecurity, public communication management, and sharia governance. Digital service disruptions can lead to viral public dissatisfaction if not accompanied by a swift, transparent, and empathetic crisis response. Furthermore, inconsistent sharia compliance has the potential to create perceptions of unsafe trust, which exacerbates reputation risk. This study concludes that reputation risk mitigation requires a holistic approach that includes strengthening digital infrastructure, enhancing cybersecurity capacity, developing crisis communication protocols, and strengthening sharia governance as the primary source of trust capital for Islamic banks. These findings are expected to form the basis for reputation strengthening strategies for the Islamic banking industry in the digital era.