Shadow of the Leader

A concept describing how leadership behaviors create the cultural tone that shapes working practices and attitudes throughout an organization. The term recognizes that employees tend to emulate the behaviors modeled by their leaders, particularly regarding risk awareness, ethical standards, and performance expectations. In RBPM, the shadow of the leader significantly influences whether risk appetite boundaries are respected in day-to-day decision-making. Leaders who demonstrate commitment to operating within appetite create cultures where appropriate risk-taking flourishes.