This study aimed to analyze the relationship between the business model of bank's risk in Islamic banks in Indonesia. Bank risk is represented by Z-score, while business model is represented in two ways, namely the portion of fee-based income in income structure and the portion of nondeposit funding in funding structure. This study analyzed panel data observed through the data 33 Islamic banks in Indonesia in 2005 to 2015. The results of this study concluded that the overall size of the data portion of fee-based income effect on the risk of the bank, while the magnitude of the portion of nondeposit funding is not effected on bank's risk. Then, for robustness checks, We conducted a regression between variables to categorize Islamic banks into large and small Islamic banks. In the category of large banks, both fee-based income and nondeposit funding did not affect bank's risk, while for banks categorized as small, the magnitude of the portion of fee-based income has an influence on the risk of bank, while the magnitude of portion of non deposit funding has no effect the bank's risk.