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PurposeThe purpose of this paper is to reveal a new contribution to behavioural finance that focuses on individuals rather than groups.Design/methodology/approachResearch is based on field studies with executives utilizing an assessment instrument to identify and measure their financial traits. The approach to the topic is to present the underlying model of financial traits and show how they add another dimension to behavioural finance approaches.FindingsThe model identifies three financial styles, each of which comprises three financial signatures. Each of the financial signatures leads to characteristic financial decisions with specific valuation outcomes.Research limitations/implicationsThe research is in its early stages. It requires larger sample sizes and needs to be conducted across industries and different cultures. Its implications are that can be predicted the financial performance and valuation of companies by knowing the financial styles of their leaders and managers, and also their financial cultures.Practical implicationsPractical implications are that this work can be used as a new method for valuing companies, for stock analysis and for portfolio analysis and valuation. It can also be used as a basis for M&A, to assess the financial alignment of companies conducting M&A and the likely chances of success.Originality/valueThe paper shows a totally new way to assess the valuation outcomes of individuals, teams and companies based purely on their behavioural financial traits.

Risk management is still dated in concept. It assumes a compliance approach. Current risk management approaches have failed in predicting both macro-economic and micro-economic setbacks and disasters. This is because financial metrics, the basis for modern risk metrics, are actually a lagging indicator of risk, not a leading indicator. Risk management needs a new paradigm which is based on leading indicators and which can therefore predict such problems. Behavioral finance provides the framework for a new paradigm for risk management.The article sets out such a new paradigm. It is based on a distillation of cognitive biases used in behavioral economics and finance. It shows how these can be used to categorize risky financial behaviors according to differing levels of risk. These various levels of risk can be linked directly to financial and valuation outcomes. This provides us with a new way to measure and predict risk based on a behavioral approach. Since behavior is a leading indicator of risk this provides a new approach which takes into account behaviors which are normally not captured in risk approaches. This opens up a new discipline of behavioral risk management. This is needed to correct for the lack of behavioral data in current approaches.

Business acumen: a critical concern of modern leadership developmentGlobal trends accelerate the move away from traditional approaches E. Ted Prince C orporations assess executives for just about every competency except business acumen -arguably the one most valued by shareholders and profit-making companies.But a sea change is taking place. Several new factors -involving the discipline of leadership development and external economic factors -are driving the realization that leadership development needs to focus specifically on business acumen.

A central issue in human resources (HR) is to make it more relevant to financial concerns and financial decision making. The little-discussed but critical issue in the field of HR is that many top executives feel that the theoretical models underlying much of leadership and executive development are of little relevance in the real world of capital, profits and margins. Until HR gets this one right, it will not, in the words of Rodney Dangerfield, get any respect.Books in the area of leadership, management, organizational behavior and executive/HR development have traditionally been based on one of two approaches. These are the personality and the competency approaches. The personality approaches focus on a leader's personality traits, and particularly interpersonal skills and thinking styles. The competency approaches focus on the capabilities of a leader or executive in a number of work-related areas such as ability to work in groups, to work independently, take the initiative and so on.