Risk Management

What’s the difference between a fiduciary financial advisor and a financial professional? It comes down to the duty of care. Michael Warszawski, CEO of CWM Partners, which provides wealth consulting services to family offices, discusses what family office professionals should know about working with the two different categories of financial advisors.

The liability insurance market is tightening, with coverage limits becoming harder to secure. Families can mitigate risks by maintaining a low profile online, implementing best practices for social media use, and working with security firms to manage their digital footprints and prevent potential liability or safety threats.

Many family offices are ill-prepared for the array of external risks they face, according to a risk management survey by law firm Dentons, “The Evolving Risk Landscape for Family Offices.” Edward V. Marshall, global head of family office for Dentons, explains how family offices can build more robust risk management strategies.

Family offices are less likely now than they were a few years ago to underestimate the risks they face, but still tend to react, rather than prevent.

Citi Private Bank’s latest report finds that family offices are shifting their asset allocations: Over half are increasing fixed income allocations and 38% are increasing private equity allocations. Other asset allocations are on the docket, too.