Operational Risk Mitigation in Zakat Distribution Effectiveness: Evidence from UPZ UINSA Surabaya

This study examines the effectiveness of zakat distribution and operational risk mitigation at the Zakat Collection Unit (UPZ) of UIN Sunan Ampel Surabaya (UINSA), using the Zakat Core Principles (ZCP) Point 10 on Disbursement Management and an operational risk management framework. Effective zakat distribution requires not only optimal fund absorption but also accountable governance and systematic risk management to ensure that assistance reaches eligible beneficiaries accurately and on time. This study employs a qualitative descriptive approach with a case study method. Data were collected through in-depth interviews, documentation, and direct observation, involving UPZ management and recipients of the UKT assistance program. Data analysis was conducted by examining the Disbursement Collection Ratio (DCR), distribution time effectiveness, and operational risk management stages, including risk identification, analysis, evaluation, and mitigation. The findings indicate that the DCR reached 99.24% in 2023, 100% in 2024, and 75% in 2025, demonstrating that zakat distribution remained effective despite a decline in 2025. Distribution was conducted within six months in each year. However, the study identifies a gap between the effectiveness of fund distribution and the implementation of institutional risk governance. Operational risk management at UPZ UINSA remains largely reactive and has not been supported by formal, documented, and sustainable procedures. Recurring risks include inaccurate mustahik data, bank account input errors, and delays in fund disbursement. Therefore, this study recommends strengthening proactive risk management through the development of a risk register, standardized Standard Operating Procedures (SOPs), periodic beneficiary data verification, and an integrated information system. These measures are expected to improve distribution accountability, beneficiary targeting accuracy, and institutional sustainability