Several national testing processes, involving the administration of standardised tests, are implemented widely worldwide to provide individual summative and formative assessment and/or monitor the quality of educational systems. The longitudinal national Programme for Functional Literacy (PfL) in Cyprus resembles a primarily formative testing process, oriented towards 'assessment for learning'. Specifically, focus is placed on the identification of students 'at risk' of school failure at two stages of compulsory education -Years 3 and 6- so as to effectively support them within the educational system. This article presents the basic theoretical, contextual and methodological underpinnings of the PfL and briefly discusses key findings. The authors mainly argue about the potential of this formative national research programme to impact educational policy and practice with regards to the management of school populations 'at risk', also drawing on the challenges involved in such an endeavour.