Risk Management

Risk management pervades every aspect of a Family Office. It can be defined broadly as a framework which seeks to limit the negative consequences and uncertainty surrounding potential events with varying probabilities. While the word “risk” can be interpreted in different ways…

Generally, the ultimate risk is an outcome which falls short of one’s objective, whether financial or otherwise.

A comprehensive family wealth management plan requires a risk management framework that incorporates every factor that could be detrimental to safety and well-being, as well as the financial risks relevant to the investment portfolio and insurance covering material possessions.

The Patrimonica Team advocates a thorough and rigorous evaluation of the risks a family faces. This analysis provides the basis for a dialogue with clients about their perceptions, values and concerns as well as their aversion, tolerance or appetite for risk. This process enables us to establish an implementation plan, monitoring, reporting and control framework.

It is critical to define the family’s vision and values, and most importantly, to ensure adherence. You can foster a family culture where awareness of risk and appropriate responses will eventually become second nature.

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