Sustainability issues for private families, data loss due to computer failure, and fraud or other loss related to transfer of client funds are top non-investment risks to private families and the firms that serve them, according to The Family Wealth Alliance’s inaugural security study.
Threats to private families take many forms. Some are chronic, with sustainability emerging as the number one risk. Others are acute, such as travel and health risks, or when a natural disaster strikes, the study found.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
"Yet others are unforeseen, such as identity theft via cyber breach, or when fraud silently occurs over time, or when a family’s good name erodes due to reputation management neglect," the study report says.
"While participating firms have a solid grip on operational security and contingency planning, there is a gap in client family awareness of the risks they face, and ways to mitigate threats wealthy families can be targets for," said Kathleen McBride, author of the study and managing director at The Family Wealth Alliance.
"Only 4.1% of client families are considered well-informed about these risks," McBride said.
According to the report, 70.8% of survey participants said families are ‘moderately informed’ about the everyday security risks they face, 21% are ‘insufficiently informed’ and 4% are ‘not informed at all."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe single-family office participants said that nearly one-third (29%) of the households they serve have suffered financial fraud incidents. 21% incidents of burglary or robbery and 17% ID theft via email or Internet.
Surprisingly, 71% of the firms said they do not employ a security consultant.
