ABSTRACT
In Chapter 3, we give an overview of the changes in banking risk management practices and policies implemented in the Malaysian banking sector after the Asian financial crisis period. The evolution of risk management policies and practices is presented in tandem with the International Basel standards ranging from Basel I to Basel III. The changes in risk management policies are essential to strengthen and make Malaysian banks more resilient in any future crisis. There is then a discussion on the best practice evaluation of Malaysian banks' risk management aspect, compared to that in selected developed countries such as US, UK, and China. The chapter also covers the future challenges of risk management, especially in the era of a digital economy.
