A Strategic Risk Management Planning Framework in Facing the COVID-19 Pandemic at Lembaga Zakat Negeri Kedah (LZNK)

The COVID-19 pandemic has adversely affected the overall socio-economic aspects of industries, thus necessitating an interdisciplinary approach related to strategic planning and risk management. The growing number of asnaf and the declining trend of zakat collection have impacted most zakat institutions in Malaysia, including Kedah. Thus, Lembaga Zakat Negeri Kedah (LZNK) need to establish a strategic risk management plan by considering various factors affecting the collection of zakat and other relevant strategic plans. This study aimed to propose a strategic risk management planning framework for LZNK in response to the COVID-19 pandemic. It involved a case study at LZNK whereby the data was collected through a literature review and semi-structured interviews with selected informants. Thematic analysis was employed to analyse the qualitative data. The results showed that LZNK has the potential to develop its own strategic risk management planning framework in response to COVID-19. This study also proposed the establishment of a specific Enterprise Risk Management (ERM) unit at LZNK, which acts as the secretariat to manage risks based on the framework developed.