“Risk management has long been a strategic focus for most single-family offices and yet many are seeing the need to revisit scope, methods and leading practices. A failure to do so can leave families and family office leaders exposed to unexpected surprises,” the survey said. “One of the dynamics driving new risk and reputation frameworks is the expanding definition of value and risk to include new environmental, social and governance considerations. Single family offices identified this as an area for increased focus and action particularly as it relates to evolving, multi-generational family priorities and legacy amidst more prominent ESG trends.”
“While digital transformation provides great opportunities, it also comes with risk,” Desmond Teo, EY Asia-Pacific Family Enterprise Leader, said in a statement. “It was clear that cyber security is a top of mind focus area—not just for the family office but for the entire ecosystem that includes the families themselves and of course the connected businesses.”
Ryan Burke, Global EY Private Leader, added in a statement, “Given the amount of capital family offices now have and the macro-economic and technological risks and opportunities today, many family offices struggle to balance this confluence effectively. As a result, we see many single-family offices considering new operating models and ecosystem relationships to strengthen the support for key functions such as technology, accounting, tax, and risk in particular.”