A toxic cocktail of risks
Family offices face a complex and wide-ranging array of ongoing risks spanning the investment, compliance, regulatory and operational arenas. Nonetheless, they also need to contend with new risks stemming from emerging technologies and the growing menace of cyberattacks. And geopolitical risks loom large: Russia’s full-scale invasion of Ukraine, Middle East conflict and a new cold war dynamic amid tensions with China, among others.
Family offices face a toxic cocktail of known, existing threats and new, evolving dangers that they need to monitor and manage. The risk landscape is being fundamentally reshaped, and this necessitates new strategies adapted to new realities.
The need for external support
Given the increasingly dangerous and fragmented risk environment, it is imperative that family offices secure support from outside specialists who can help them navigate multiple and evolving threats. This study shows that more than half (54%) of family offices rely heavily on external legal support to manage and mitigate risks. Newer offices established within the last two years (77%) are particularly reliant on such help. In addition, single family offices (SFOs) lean on outside support more than multi-family offices (MFOs)—56% vs. 45%.
