Effectively Dealing with Uncertainty

Last week we released our latest study, "Building a Family Enterprise Plan to Deal with Future Uncertainty." Based on the press coverage and level of blog commentary, we appear to have touched on an important subject. 

The tumult of the financial crisis and a feeling that the world has increasingly become a global village has focused minds on the need to think and plan ahead. Our conversations with families in various parts of the world reflect a growing awareness that by readying yourself for different scenarios – geopolitical, regulatory, etc. – you build organizational "resilience," making your family better equipped to be an active steward of their wealth.

Of course, a lot of the responsibility to coordinate this planning falls on the shoulders of the family office as risk manager; however, in developing a strategic plan, the family plays an indispensable role and, at the very least, must be consulted along the way.

As we argue in the report, there is no catch-all or panacea for mitigating risk, but simple tools and processes can bring discipline and a degree of peace of mind that, in spite of the sometimes bewildering complexity of the world in which we live, families are not adrift without an anchor to manage their wealth. Long-term wealth preservation is no accident. Families that maintain their wealth on an inter-generational basis come together periodically with their advisors to formally analyze their goals and shared assets (financial, human, philanthropic and business capital) in a strategic manner.

We would love to hear about how you perceive the evolving risk (and opportunity) landscape and the role that long-range planning plays in affording both a more integrated perspective and certainty for you.