Family Offices
Many family offices do not have specific risk management processes and procedures for their organizations. They may feel that it is not a top priority for the family office or that recruiting people with the right skill set and employing them at the right level may be too expensive. Others feel it’s a good idea to assign responsibility for risk management to an internal auditor or the finance manager. Is there another option to consider?
Family Offices Can Effectively Outsource Risk Management
In many cases work can be done more effectively and more efficiently by an outsider than an insider. Engaging a truly independent firm with the right knowledge, skills, and experience can add value and bring proper risk governance and risk management to an organization, and family offices are no exception. The services of an independent firm acting in the capacity of a Chief Risk Officer for family offices typically comprises developing and implementing Enterprise Risk Management and the ongoing execution of these solutions in the role of CRO on a retainer basis. An outsourced solution is practical, flexible, scalable, and can be adapted to suit any family offices requirements. An independent firm acting in the capacity of a CRO works with the board, the executives, and the senior management team of the family office to develop and maintain the organization overall Enterprise Risk Management program. Typical services include:
