In light of the Final Guidelines on Internal Governance (EBA/GL/2017/11), a clear directive emerges: both the Board of Directors and Senior Management are tasked with the continuous promotion, evaluation, and cultivation of the institution’s risk culture. This encompasses the institution’s prevailing norms, attitudes, and behaviors concerning: risk awareness, risk-taking, risk management, and the pivotal controls that shape decisions pertaining to risks.

While addressing this imperative is integral to conventional internal governance protocols, systems, and processes that revolve around formal structures mandated by legal and regulatory frameworks, it is essential to acknowledge the impact of human behavior within these established frameworks. However, hitherto, regulated entities have been devoid of a practical methodology to achieve this.

Introducing the ‘Risk Type Compass’ (RTC) psychometric personality assessment, now available in Cyprus through a certified practitioner who is also a governance and risk specialist. This meticulously reviewed tool unveils individualized decision-making approaches rooted in the bedrock of an individual’s instincts and inclinations. The precision in identifying and acknowledging these fundamental factors amplifies decision-making efficacy at personal, team, and organizational levels, thereby ushering in elevated performance and outcomes.

The interplay of risk dispositions significantly influences: individual decision-making, interpersonal dynamics within teams, and the overarching risk culture permeating organizations. Understanding how each individual perceives and responds to risk and uncertainty – their unique method of navigating the continuous stream of conscious and subconscious choices – yields invaluable insights into the strengths and weaknesses of decision-making across all tiers.

A notably dependable psychometric tool, the RTC embraces the cognitive diversity imperative for optimizing efficacy while circumventing pitfalls like ‘groupthink,’ ‘risk polarization,’ and ‘cognitive dissonance.’ Standing as the sole instrument divulging the pivotal equilibrium between Cognition and Emotion that neuroscience attributes to decision-making, this tool delves into the bedrock of organizational triumph, ensuring that developments in diversity remain well-calibrated and sustainable.

Categorizing individuals into one of eight distinct Risk Types, the assessment is conveniently administered online and consumes a mere 10-20 minutes to finalize.

The ‘Risk Type Compass’ emerges as an indispensable asset in aiding the Board of Directors and Senior Management in shaping risk culture in alignment with regulatory mandates and broader stakeholder expectations. For further insights into how your organization can harness the advantages of its recent introduction to Cyprus, please reach out to EIMF at 22274470.