Abstract: Talent strategy in human resource planning is generally used to deliver business strategy of a firm. The identification, recruitment, development and retention of talented employees are aligned with the priorities of the firm’s business. As businesses today are borderless with the global environment, putting in place the most effective talent management strategy is a key to competitive success of firms and this includes the banking industry. Hence, people who are talented in the organization provide opportunities for the firms. As a result, many big firms seem to spend much time on developing these talented employees but less time on retaining them. This includes the Malaysian banking institutions. It is timely for Malaysian banks to have their own talent programs due to acute shortage of banking talents. Hence, the talent systems of banks require investments in these intangible assets. The above need is reinforced by the fact that an important Malaysian banking resource would be talent following the final phase of consolidation of banking institutions by the year 2015. When demand goes up and supply of talent goes down, more and more banking institutions in Malaysia begin to realize the importance of talent strategy and planning to be a part of management strategic focus; hence an integrated talent program for the banking institutions. The objective of this study is to testify that the use of talent strategy as a hedging strategy is able to manage banking talent risks in the Malaysian banking sector. The study proposed to use Talent Management Practices (TMP), Employee Value Proposition (EVP) and Talent Brand Strategy (TBS) as variables along with 12 indicators of Malaysian banking talents by testifying for their direct and indirect relationships. The five research objectives and questions of the study were fulfilled by employing the Structural Equation Modelling (SEM). The five hypotheses of the study revealed that there are significant positive relationships between talent management practices, employee value proposition and talent brand strategy for Malaysian banks. The study also found that employee value proposition partially mediates the relationship between talent management practices and talent brand strategy for the bans. With these significant relationships, the findings of this study suggest that it is timely for the local banks to enhance their talent strategy as this can deliver as business strategy for instance facilitating in innovating the operating structure of financial instruments. Additionally, due to the acute shortage of banking talents in Malaysia, there is a strong need to use talent strategy in managing banking talent risks. This is necessary for the local banks to remain competitive and profitable for a long term in this era of global banking.