Eyes Wide OpenEyes Wide Open

Sara Hamilton, founder and CEO and Anna Nichols, director of member programs, Family Office Excha

While modern corporations practice the art of risk management, this is not common among family enterprises, not even the most sophisticated. While wealth owners embrace formalized risk management, the focus of that endeavor tends to be on a single dimension: financial security. Of course, almost all “financial families” (those with multi-generational wealth) practice risk management informally; for example, they carry property insurance, create complex trusts and monitor investment performance. But strategically managing risk can, and should, go beyond investment and insurance to incorporate many other types of risk that can damage long-term ...