Vulnerability at the Family Office

Surveying the landscape of risks and threats

If 2020 has taught us anything, it is the importance of planning and preparing for the unexpected. Our survey of over 200 family office executives has uncovered some worrying approaches to the threats facing family offices, including risks stemming from insider threats, as well as health, cyber, family, investment, and employment-related matters.

Poor risk management mindsets

A change in mindset is a need at many family offices, which either underestimate threat levels (47%) or are complacent about risks (41%). Limited staff , as well as an emphasis on cost and convenience, are other obstacles to better risk management.

Prevalence of cyber attacks on family offices

Over a quarter (26%) of family offices have suffered a cyberattack. In almost two-thirds of these cases, it happened within the last 12 months.

Underestimating cyber risks

Small and newer family offices underestimate both the likelihood (15% compared to 25% at larger family offices) and potential impact of cyberattacks (38% expect a major or catastrophic impact from a cyberattack compared to 52% of larger family offices). Older and larger family offices are more likely to have implemented cybersecurity measures (60% versus 31% for newer family offices).

Read our full whitepaper detailing the results of this survey, along with practical tips and recommendations from our experts that you can implement at your family office.

Download the whitepaper

The views expressed in the article are those of the author and/or person interviewed and do not necessarily reflect the views of Silicon Valley Bank, a division of First-Citizens Bank and First Citizens BancShares, Inc. The materials on this website are for informational purposes only, are subject to change and do not take into account your particular investment objective, financial situation or need. Since each client’s situation is unique, you should consult your financial advisor and/or tax planning professional before acting on any information provided herein.