What is Operational Risk in Family Offices
Operational risk in family offices refers to the potential for losses resulting from inadequate or failed internal processes, people, systems, or from external events that disrupt operations. This risk can impact the efficiency and effectiveness of managing family wealth and assets.
Sources of Operational Risk in Family Offices
Operational risks in family offices can arise from various sources, including human errors, system failures, fraud, regulatory changes, and natural disasters. Effective risk management strategies are essential to mitigate these risks and ensure the smooth operation of family office activities.
