One of the Most Overlooked Factors in Assessing Risk Tolerance

A critical step in financial planning for a family office lies in assessing their risk tolerance. Of the many risks to consider, cyberattacks are the most prevalent and are currently on the rise. 

In 2020 the study Boston Private Surveying the Risks and Threats to Family Offices found over a quarter (26%) of family offices have suffered a cyberattack. Nearly two-thirds of these cases surveyed occurred in the previous 12 months. 

Most FOs simply have not adequately prioritized cyber security measures. 

Cyber attacks are no trivial threat. If anything the exposure of FOs on social media and online opens them up to a more devastating risk than any other. Exposure to cyber attacks can lead to devastating financial loss, reputational damages, and the exposure of sensitive client data. 

When assessing family risk tolerance, addressing cybersecurity vulnerabilities to implement robust risk management strategies should be at the top of your list. 

As we prepare to wrap up this year, investing in cybersecurity awareness, employee training, and technological defenses is imperative to ensure a more resilient and secure future. 

For an in-depth read on precautions to take against cyber attacks, check out this article from Forbes.