Key Insights from Alliant’s Family Enterprise Risk Index
In our continued effort to provide advisors with valuable resources to better serve ultra-high-net-worth families, we are pleased to share that Alliant Private Client, an award-winning insurance broker for affluent families and individuals, has published its Family Enterprise Risk Index. As new or growing perils alter the risk landscape of wealthy multi-generational families across their holdings, this comprehensive research white paper surveyed 145 family enterprises on multiple areas of risk and risk management practices to understand how they are able to successfully weather these hazards.
“Our goal was to understand their current outlook on risk, along with what risk management practices are in place,” explains Linda Bourn, senior vice president and family enterprise risk practice leader at Alliant and advisory board member at The UHNW Institute. “Additionally, we wanted to give families and their executives a benchmark against their peers and identify areas that can improve their risk mitigation strategies.”
The Family Enterprise Risk Index surveyed both family members in the enterprise and those who work in the family office (family and nonfamily), comparing responses between family and nonfamily members to reveal some important differences. The research provides helpful insights into areas where family offices and enterprises need to focus efforts related to talent, succession, family conflict, cybersecurity and investment performance.
According to Alliant, some key insights from the survey include:
- The majority of family enterprises lack a full-time risk manager
- Annual family risk reviews vary, with many having no regular review process in place
- There’s a disparity between enterprise-level and family-level risk planning
- Family enterprises are most concerned about internal challenges vs. external ones