MANAGING FAMILY RISKS

Most common threats to a family’s long-term goals:

• Lack of a shared vision for the future
• Lack of effective decision-making process
• Lack of transparent family communications
• Improper ownership structures
• Lack of appropriate diversification of assets
• Lack of focus on key family risks

The six-step process for managing family risk:

• Define long-term family goals and objectives
• Identify risks associated with family objectives
• Prioritize risks by likelihood of occurrence and potential impact
• Create mitigation strategies for top priority risks
• Commit resources for implementing mitigation strategies
• Continuously monitor the risk landscape and results of mitigation efforts