EXPLORING LEADERSHIP STYLES AND THEIR IMPACT ON RISK MANAGEMENT IN ISLAMIC BANK: A LITERATURE REVIEW MULTIPLE CASE STUDY APPROACH

Abstract

Every leader must be able to take risks on behalf of the organization, since these are skills that can steer a business in the proper direction. In the absence of a shared understanding of what constitutes a complex construction of leadership, the implementation of risk management is impacted, which has repercussions for the performance and risk of Islamic banking. The objective of this study was to analyze leadership styles and leadership typologies in implementing risk management, with implications for Islamic banking's performance and risk. This study employs qualitative research with a literature review or literature review methodology. Researchers selected ten peer-reviewed journal papers that matched the research topic in the Scopus index throughout a five-year period (2017–2021). These publications were examined by researchers and then analyzed descriptively. The most prevalent kind of leadership is transformational leadership, which motivates individuals to achieve extraordinary results. The study's findings also indicate that leadership style and type have an effect on the implementation of risk management, which has consequences for the performance of Islamic banking.