Risk mitigation a top priority for family offices
Governance procedures have become increasingly important for family-owned businesses and wealth managers who are looking for ways to mitigate risk, according to Jared Kaplan, an attorney for McDermott Will & Emory LLP of Chicago.
Governance procedures have become increasingly important for family-owned businesses and wealth managers who are looking for ways to mitigate risk, according to Jared Kaplan, an attorney for McDermott Will & Emory LLP of Chicago.
“Risk has become a greater concern for families than ever before, especially following last year’s business environment,” Mr. Kaplan said while addressing a session on lowering risk through various governance approaches at the Family Firm Institute Inc.’s annual conference in New York today.
“Governance [procedures] such as family councils and boards have to be seen as a critical response to a number of risks family businesses can face,” Mr. Kaplan said.
Those risks can range from unfavorable markets to dissension within a family, he said.
“Governance shouldn’t be just protection from legal liability,” Mr. Kaplan stressed. “It should control stress within the family and manage tensions among family members.”
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