The Empirical Testing of Risk Management on Profitability Growth of Sharia Rural Banks in Indonesia

This study aims to analyze the effect of risk management as measured by operational risk, liquidity risk and credit risk on financial performance in Islamic rural banks (BPRS) in Indonesia. This study used a quantitative approach. This research was in the type of explanatory research. Methods of data analysis used path analysis. The research data is obtained from the statistics of Indonesian banks and the Financial Services Authority (OJK). The independent variables included financing risk (NPF) and operational risk (BOPO). The dependent variable was ROA. This study showed that NPF had negative and significant effect on financial performance. BOPO had a significant effect on financial performance