| Summary: | In pursuing the mammoth Belt and Road Initiative (BRI), China is counting on the perceived cultural similarities with the overseas Chinese to promote better bilateral understanding and business flows. This presents unprecedented opportunities but also risks because these communities are not identical. Among the overseas Chinese, Malaysia is unique because of its multiracial context, economic significance and growth prospects. As a start, this paper seeks to understand the risk psyche of ethnic Chinese entrepreneurs in Malaysia. It examines whether some traditional Chinese values may differentiate the ethnic Chinese entrepreneur-controlled banks compared with institutional-controlled banks. It traces the historical background of ethnic Chinese businesses and draws upon studies regarding family businesses and entrepreneurship, which yield mixed findings on their effectiveness as compared with institutional-controlled businesses. Using discriminant analysis on a survey of 135 risk management professionals, the findings suggest that the entrepreneur-controlled banks differ from the others through lower scores on two elements taken combinatively: (1) proactive awareness of new techniques, and (2) extent of learning in the course of developing their own risk models. These findings provide an empirical basis for some insights into these banks’ risk psyche and enduring success. While such values are beneficial, one may also wish to consider adopting newer and institutionalized approaches to progress further.
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