This study aims to review; 1) Why is the current risk mitigation model structure in credit guarantee institutions in Indonesia not ideal? 2) What is the ideal structure of risk mitigation model in credit guarantee institutions in Indonesia? The research method used is normative juridical research, which is research
focused on examining the application of rules or norms in positive law. The results showed that; 1) The construction of risk mitigation models in credit guarantee institutions in Indonesia is currently not ideal due to several things in handling Failed Banks, such as the handling of Bank Century, namely; (a) Corruption related to Bank mergers; (b) Changes to the Regulations for the Disbursement of Short-Term Funding Facilities (FPJP); (c) FPJP BC that does not have complete collateral requirements; (d) Existence of Accounting Engineering, Fictitious Credit, and other Violations; (e) The embezzlement of foreign currency cash. 2) The ideal construction of risk mitigation models at credit guarantee institutions in Indonesia is carried out in stages; a) Identification of legal risks; (b) Legal Risk Measurement; (c) Legal Risk Monitoring; (d) Legal Risk Control; e) Credit Risk Control; (f) Legal Risk Management Information System; (g) Internal Control for Legal Risks.