Author

  • Nura Lina binti Md Elias

    • Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia
    • Malaysia

  • Nurhuda binti Nizar

    • Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia
    • Malaysia

  • Shamshimah binti Samsuddin

    • School of Mathematical Sciences, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
    • Malaysia

Abstract

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.

Keywords

References

  • Abidin, H. Z., Rasid, S. Z. A., Khalid, H., Basiruddin, R., & Baskaran, S. (2019). Effectiveness of Enterprise Risk
  • Management Practices: A Case Study. Business Management and Strategy, 10(2), 213-233. https://doi.org/10.5296/bms.v10i2.15800
  • Anisa, A., & Sutrisno, S. (2020). Capital Buffer and Determinant Factors of Conventional Banks in Indonesia. Journal of Asian Finance Economics and Business, 7(12), 377-384. https://doi.org/10.13106/jafeb.2020.vol7.no12.377
  • Anton, S. G., & Nucu, A. E. (2020). Enterprise Risk Management: A Literature Review and Agenda for Future Research. Journal of Risk and Financial Management, 13(11), 281-303. Multidisciplinary Digital Publishing Institute. https://doi.org/10.3390/jrfm13110281
  • Bank Negara Malaysia (2020). Risk Management in Technology (RMiT) Guidelines.
  • Blum, D. (2020). Institute Resilience Through Detection, Response, and Recovery. In Apress eBooks (p. 259). https://doi.org/10.1007/978-1-4842-5952-8_9
  • Burnaby, P., & Hass, S. (2009). Ten steps to enterprise?wide risk management. Corporate Governance, 9(5), 539-550. https://doi.org/10.1108/14720700910998111
  • Bromiley, P., McShane, M. K., Nair, A., & Rustambekov, E. (2014). Enterprise Risk Management: Review, Critique, and Research Directions. Long Range Planning, 48(4), 265-276. https://doi.org/10.1016/j.lrp.2014.07.005
  • Catalyst, N. (2018). What Is Risk Management in Healthcare.
  • Chen, Y., Chuang, Y., Huang, H.-G., & Shih, J.-Y. (2019). The value of implementing enterprise risk management: Evidence from Taiwan’s financial industry. The North American Journal of Economics and Finance, 54-69. https://doi.org/10.1016/j.najef.2019.02.004
  • Ching, H. Y., & Colombo, T. M. (2014). Enterprise Risk Management Good Practices and Proposal of Conceptual Framework. Journal of Management Research, 6(3), 69-85. https://doi.org/10.5296/jmr.v6i3.5404
  • COSO (2017). Enterprise Risk Management—Integrating with Strategy and Performance.
  • Deloitte (2019). Global Risk Management Survey.
  • ElSayed, M., Wickramainghe, A., & Razik, M. A. (2011). The association between strategic cost management and enterprise risk management: A critical literature review. Corporate Ownership and Control, 9(1), 184-195. https://doi.org/10.22495/cocv9i1c1art3
  • Fitriana, S., & Wardhani, R. (2020). The effect of enterprise risk management and sustainability reporting quality on performance: evidence from Southeast Asia countries. International Journal of Economic Policy in Emerging Economies, 13(4), 344-355. https://doi.org/10.1504/ijepee.2020.109588
  • Habib, S., Masood, H., Hassan, T., Mubin, M., & Baig, U. (2014). Operational Risk Management in the Corporate and Banking Sector of Pakistan. Information and Knowledge Management, 4(5). 58-66.
  • ISO (2018). ISO 31000: Risk Management – Guidelines.
  • Kaya, ?. (2017). Perspectives on Internal Control and Enterprise Risk Management. In Eurasian studies in business and economics, 379-390. https://doi.org/10.1007/978-3-319-67913-6_26
  • Lima, P. F. de A., Crema, M., & Verbano, C. (2019). Risk management in SMEs: A systematic literature review and future directions. European Management Journal, 38(1), 78-94. https://doi.org/10.1016/j.emj.2019.06.005
  • Liu, J. Y., Zou, P. X. W., & Gong, W. (2013). Managing Project Risk at the Enterprise Level: Exploratory Case Studies in China. Journal of Construction Engineering and Management, 139(9), 1268-1274. https://doi.org/10.1061/(asce)co.1943-7862.0000717
  • Mensah, G., & Gottwald, W. D. (2016). Enterprise risk management: Factors associated with effective implementation. Risk Governance and Control Financial Markets & Institutions, 6(4), 175-206. https://doi.org/10.22495/rcgv6i4c1art9
  • Oko-Odion, C., & Angela, O. (2025). Risk management frameworks for financial institutions in a rapidly
  • changing economic landscape. International Journal of Science and Research Archive, 14(1),
  • 1182-1204. https://doi.org/10.30574/ijsra.2025.14.1.0155
  • Prasanna, B. L., & Saidireddy, M. (2021).: Cyber Security Maturity Model for Risk Assessment Using Risk Register for Threat Intelligence. Journal of Physics Conference Series, 2040(1), 13-24. https://doi.org/10.1088/1742-6596/2040/1/012005
  • Prewett, K. W., & Terry, A. (2018). COSO’s Updated Enterprise Risk Management Framework—A Quest For Depth And Clarity. Journal of Corporate Accounting & Finance, 29(3), 16-23. https://doi.org/10.1002/jcaf.22346
  • Rashid, M. A. A., Zakaria, S., Azizah, A., & Ridzuan, A. R. (2021). Capital Adequacy Challenges in Facing Economic Conflicts in Banking Institutions. International Journal of Academic Research in Business and Social Sciences, 11(8). 678-686. https://doi.org/10.6007/ijarbss/v11-i8/10183
  • Rasid, S. Z. A., & Rahman, A. R. A. (2012). Management Accounting and Risk Management Practices In Financial Institutions. Jurnal Teknologi. 89-110. https://doi.org/10.11113/jt.v51.159
  • Raizada, S. (2019). Employee Relationship Management: Key to Organizational Growth. Business Management and Strategy, 10(1), 167-180. https://doi.org/10.5296/bms.v10i1.14951
  • RIMS (2015). Risk Maturity Model for Enterprise Risk Management.
  • Rubino, M. (2018). A Comparison of the Main ERM Frameworks: How Limitations and Weaknesses can be
  • Overcome Implementing IT Governance. International Journal of Business and Management, 13(12),
  • 203-214. https://doi.org/10.5539/ijbm.v13n12p203
  • Rubino, M., & Vitolla, F. (2014). Corporate governance and the information system: how a framework for IT governance supports ERM. Corporate Governance, 14(3), 320-330. https://doi.org/10.1108/cg-06-2013-0067
  • Sakrabani, P., & Ping, T. A. (2022). Enterprise Risk Management: A review of two decades. Journal of Information Systems and Technology Management, 7(27), 76-84. https://doi.org/10.35631/jistm.727006
  • Shatnawi, S. A., Hanefah, M. M., Anwar, N. A. B. M., & Eldaia, M. (2020). The Factors Influencing the Enterprise
  • Risk Management Practices and Firm Performance in Jordan and Malaysia. International Journal of
  • Recent Technology and Engineering, 8(5), 687-702. https://doi.org/10.35940/ijrte.d8114.018520
  • Sookye, L., & Mohamudally-Boolaky, A. (2019). Effectiveness of Financial Risk Management Framework: An Analysis of the Mauritian Banking Sector. Journal of Financial Risk Management, 8(2), 106-124. https://doi.org/10.4236/jfrm.2019.82008
  • Vallabh, G. (2005). Risk-Based Supervision of Banks – Framework for Risk Assessment. Asia Pacific Business Review, 1(1), 26-33. https://doi.org/10.1177/097324700500100104
  • Vij, M. (2019). The emerging importance of risk management and enterprise risk management strategies in the Indian hospitality industry. Worldwide Hospitality and Tourism Themes, 11(4), 392-403. https://doi.org/10.1108/whatt-04-2019-0023
  • Viscelli, T. R., Beasley, M. S., & Hermanson, D. R. (2016). Research Insights About Risk Governance. SAGE Open, 6(4), 1-17. https://doi.org/10.1177/2158244016680230
  • Whittle, C. E., & Nel-Sanders, D. (2022). The regulatory framework for enterprise risk management in South African local government. Africa’s Public Service Delivery and Performance Review, 10(1). 610 – 618. https://doi.org/10.4102/apsdpr.v10i1.610
  • Zainudin, S. M., Rasid, S. Z. A., Omar, R., & Hassan, R. (2019). The Good and Bad News about the New Liquidity Rules of Basel III in Islamic Banking of Malaysia. Journal of Risk and Financial Management, 12(3), 120-139. https://doi.org/10.3390/jrfm12030120
  • Zhao, X., Hwang, B., & Low, S. P. (2015). Enterprise risk management in international construction firms: drivers and hindrances. Engineering Construction & Architectural Management, 22(3), 347-359. https://doi.org/10.1108/ecam-09-2014-0117
  • Zulfitra, Z., Ganar, Y. B., Sahroni, S., & Arsyan, M. A. (2022). The Effect of Risk Management and Profitability on Stock Prices Moderated by Good Corporate Governance Variables. Kontigensi Jurnal Ilmiah Manajemen, 10(2), 299-311. https://doi.org/10.56457/jimk.v10i2.288

Downloads

Full-text downloads recorded for this article, by month.

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

binti Md Elias, N. L., binti Nizar, N., & binti Samsuddin, S. (2025). Enterprise Risk Management Maturity in Malaysia’s Banking Industry: A Conceptual Assessment. Information Management and Business Review, 17(3(I)S), 237-245. https://doi.org/10.22610/imbr.v17i3(I)S.4731

Share this article

License

Copyright (c) 2025 Nura Lina binti Md Elias, Nurhuda binti Nizar, Shamshimah binti Samsuddin (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 17 No. 3(I)S (2025) Digital Leadership, AI-Assisted Learning & Inclusive Workforce View issue contents

Published

2025-10-14

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission