Enterprise Risk Management Maturity in Malaysia’s Banking Industry: A Conceptual Assessment

Enterprise Risk Management (ERM) has emerged as a critical framework for ensuring the stability, resilience, and long-term sustainability of financial institutions. In Malaysia, the banking industry has made significant progress in embedding ERM, guided by Bank Negara Malaysia (BNM) regulatory frameworks and global best practices. However, the maturity of ERM practices varies across institutions, particularly in areas such as governance, culture, risk reporting, and technology adoption. The objective of this concept paper is to design an integrated framework to assess the ERM maturity of the Malaysian banking industry. This concept paper proposes an integrated ERM maturity assessment by examining ten key dimensions that reflect compliance with international standards and regulatory requirements. Findings are expected to provide insights for regulators, policymakers, and banking institutions to strengthen ERM practices, support sustainable financial growth, and stay resilient.