The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Talent optimisation, human risk management, performance and emotional wellbeing are all key success drivers. However, when these factors are negative, they damage regulatory compliance, operational security and performance. Central the positive / negative balance of factors is how people think, make decisions, and cope with internal and external pressures.

Traditional approaches to assessing, wellbeing, risk, and performance rely on observable behaviours, interviews, or post incident analysis. This is subjective and often too late. However, advances in cognitive science and behavioural analytics offer new ways to proactively measure these factors, helping organisations, practically support emotional wellbeing, optimise workforce performance and mitigate risks before issues arise.

The role of employee wellbeing in financial performance

Financial institutions are demanding environments, and more than ever emotional wellbeing is impacting the modern workforce. Scientifically supporting employee wellbeing can imprve engagement and performance whilst reducing absenteeism, and turnover rates.

By actively monitoring and supporting emotional wellbeing, financial institutions can:

• Enhance workforce resilience and reduce wellbeing-related attrition.
• Develop targeted initiatives to support employees.
• Foster a culture of engagement, improving overall organisational performance.

Understanding risk in financial institutions

Financial institutions face a complex threat landscape, from external cyber threats to internal risks such as fraud, non-financial misconduct, and human error. While many organisations have robust systems in place to detect external threats, people centric factors have been harder to identify.

Assessing risk factors—such as cognitive resilience, decision-making tendencies, and emotional intelligence —can help organisations:

• Identify early indicators of potential insider risk.
• Strengthen security by integrating human insights into risk management frameworks.
• Reduce compliance violations by proactively addressing behavioural vulnerabilities.

Moving forward: the importance of a proactive approach

Understanding emotional wellbeing and human risks is now possible and will enable financial institutions to navigate today’s challenges. Integrating scientifically validated insights into these areas can help build stronger, safer, and more resilient teams.