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risk management

February 26, 2020

The epicentre of risk in the financial system has moved. In 2008, it was leverage in the banks. Today, the equivalent risk is in the asset management industry, where a series of interlocking factors have come together to make markets increasingly ‘avalanche prone’. There is an illusion of stability. Low volatility has lulled many to sleep. We believe this will end badly—and are positioning portfolios to protect our clients from the avalanche.

This is the first of two white papers published by our chief investment officer, Henry Maxey, on the current investment climate and where we see the risks. The second paper, Dismantling the Deflation Machine, will be published in March.

Prioritising risk management for family offices

February 21, 2020

An inconvenient side effect to living in today’s fully digitised world is that threats have also gone digital—become more difficult to discover, track and neutralise. All financial institutions are now faced with the colossal task of protecting against increased threats to their business, no matter how ‘under the radar’ their profiles have traditionally been—family offices included.

FB roundup: Walmart, Hong Kong and Preon Capital Partners

November 15, 2019

Walmart weathers trade war with soaring digital sales, family offices enticed to stay in Hong Kong, Jari Ovaskainen’s family office ties to Alierta family.

Walmart weathers trade war with soaring digital sales

The 3.2% growth in third-quarter sales announced by family business Walmart this week, ahead of lucrative holiday sales, are being seen as a sign of the US economy’s resilience against a weakening global economy.

Market insight: Uncalculated risk—Mental health management

April 10, 2018

Wealthy families spend significant sums monitoring and managing financial, operational, and other risks, yet mental health issues are equally as dangerous when they affect key family members or principals.

“Rags to riches and back again in three generations.” We’ve heard it more times than we can count, but the sad truth is, the old adage is true far too often. Great wealth is earned by the hard-working first generation, only to disappear by the third.

Unexplained Wealth Orders: Getting caught in the crossfire

February 22, 2018

In January, new powers designed to help UK law enforcement act on corrupt assets came into force. Jonathan Fisher QC, a barrister specialising in financial crime and founder of Bright Line Law firm, lays out Unexplained Wealth Orders and how family office investors can avoid getting caught in the crossfire.

Investors must be careful not to get caught in the crossfire between Government enforcement authorities and criminals investing the fruits of their criminal activities.

Risk management lacking in US family businesses

January 22, 2015

More than two-thirds of family businesses in the US have failed to implement formal risk management procedures, despite the majority recognising that threat identification is a top priority, new research has revealed.

Family Enterprise Risk Index 2015, published by strategic risk and insurance advisor Crystal & Company, found that 66% of respondents believed that risk management was a top strategic objective, but found only 30% had implemented formal processes.

Risky families

August 21, 2012

In these less than certain times, getting risk management right is harder than ever. Campden looks at the challenges family offices face.

Ask any family office about risk management today and you’re likely to get a completely different answer than what you would have back in the halcyon days before the credit crisis.

The new world of risk management: Best practices for family offices

January 13, 2012

Following the financial crisis, families tend to want more insight into investments, risk control and performance attribution. To explore how family office clients' mix wariness and desire for reasonable returns, Advent Software has released a white paper on the world of risk management.

Following the financial crisis, families tend to want more insight into investments, risk control and performance attribution. Furthermore, there are increased regulatory concerns about investor protection and calls for greater transparency. This is putting pressure on firms to up their game when it comes to the quality and type of services they provide to clients.

In particular, many firms recognise the need for more efficient and comprehensive risk management and reporting to meet the more stringent requirements of families today.

Nixon: bigger changes ahead

June 3, 2009

This year, for SFOs Europe-wide, it’s a question of risk management and cash alternatives, says Merrill Lynch’s Mark Nixon in this exclusive interview with Bruce Love.

This year, for SFOs Europe-wide, it's a question of risk management and cash alternatives, says Merrill Lynch's Mark Nixon in this exclusive interview with Bruce Love.

Danger: high risk area

June 3, 2009

Last year was the year that diversification didn’t work. For many family offices, diversification was the cornerstone of their risk management approach. In light of the new investing environment, are family offices changing the way they approach risk management?

Last year was the year that diversification didn't work. Traditional investment theory was turned on its head as the majority of asset classes fell in unison. For many family offices, diversification was the cornerstone of their risk management approach and few succeeded in their key goal – the preservation of capital. In light of the new investing environment, are family offices changing the way they approach risk management?