Main Article Content
Abstract
Introduction
Data security is a critical issue in today's digital age, exacerbated by the rampant online buying and selling of consumers’ personal data. This study focuses on the strategies employed by microfinance institutions, specifically Baitul Maal wa Tamwil (BMT), to protect member data and manage the associated risks.
Objectives
The objective of this study is to describe mitigation strategies for data protection and risk management implemented by BMTs in Lampung.
Method
This field research employs qualitative methods, including observation and interviews, which are analyzed using the inductive thinking paradigm. Data collection focuses on BMTs' risk management practices and their cooperation with commercial banks to transfer risk.
Results
The findings reveal that BMTs in Lampung have implemented effective risk-management strategies for data protection. Some BMTs transfer risk to commercial banks, a strategy known as risk transfer. Others adopt risk reduction and acceptance strategies by enhancing data security, training employees on system use, and managing existing risks to minimize business impact.
Implications
This study highlights the importance of robust data protection and risk management strategies to maintain customer trust in microfinance institutions. Effective risk mitigation ensures customer data security, thereby enhancing the credibility and sustainability of BMTs.
Originality/Novelty
This study contributes to the understanding of data security practices in microfinance institutions, particularly in the context of Islamic microfinance, by exploring practical mitigation strategies and their implementation.
Article Details
Copyright (c) 2023 Diana Ambarwati, Hermanita Hermanita
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).