This study aims to examine the Risk Mitigation Model in Credit Guarantee Institutions in Indonesia today. Bank failures have no systemic impact; a) The estimated cost of rescue is up to 60% of the estimated cost of not doing the rescue; b) The bank's business prospects with indicators: net NPL < 5% and no violations and the bank's health level is not healthy with a Composite rating of 4 (Commercial Banks) and Unhealthy Rating 3 (BPR); c) A statement of the GMS that is willing to hand over the management, rights and authority of the GMS to LPS, d) The bank's shareholders' willingness to submit the bank's settlement to LPS including to submit the required documents. The research method used is empirical juridical with a legislative approach, a conceptual approach, and a case study. The results showed that; 1) Forms of Risk of Credit Insurance Institutions in Indonesia include; a) legal risk, b) market risk, c) operational risk, d) credit risk, e) reputational risk, e) strategic risk, and compliance risk. (2) Banks fail to have a systemic impact; a) Estimated handling costs < estimated costs not handling, b) The bank's business prospects are still good, after being saved, c) There is a statement of the bank's GMS that is willing to hand over the management, rights and authority of the GMS to LPS, d) The bank submits documents to LPS. 2) The construction of a risk mitigation model in credit guarantee institutions in Indonesia is currently not ideal because of several things in the handling of Failed Banks, such as the handling of Century Bank, namely; (a) Corruption related to Bank mergers; (b) Changes in Regulations for the Distribution of Short-Term Funding Facilities (FPJP); (c) FPJP BC that does not have complete collateral requirements; (d) Accounting Engineering, Fictitious Credit, and Other Violations; (e) There is embezzlement of foreign exchange cash. 3) The construction of the ideal risk mitigation model in 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