Your assets: Capital and security

The family operating model is the link between the family’s strategic intent and its ability to deliver on that. Within this framework, family business owners need to consider how to manage their assets and protect the family’s capital in a way that achieves operational efficiencies, manages risk and protects the family legacy for future generations. 

Leading families leverage their resources to optimize costs and enable growth.

What EY can do for you

As the complexity of managing the family wealth grows, families may look to professionalize this and achieve improved operational efficiency through the use of some form of family office function. This might start with the founder’s assistant or a few staff members who pay bills, make travel plans and perform some record-keeping functions, and can evolve into a full-service single family office that manages investments, tax, accounting, reporting, philanthropy and next-generation education for the full family across multiple generations.

Risk management is another key challenge for a family, and this can also be a reason why a family may consider setting up a family office. When contemplating what measures are needed to protect the family’s assets from risk, it is important to have a broad view on risk. Strategies around data protection and privacy, cybersecurity, social media and the security of family members are often required as well as systems in place to manage financial, operational, tax and regulatory risks. Putting a comprehensive risk management framework in place will help to protect the family’s capital as well as its privacy and reputation.

EY applies a broad approach to working with families to protect the family capital. We help the family put in place systems and processes to manage its wealth in a way that achieves operational efficiencies and cost savings while reinforcing family values and fostering family unity.

Focus areas

Reporting, record-keeping and document management are key functions that can be automated to achieve efficiencies and provide the family with greater transparency over their assets and activities.

Regulatory compliance is a core activity, and it is critical to ensure that it is done efficiently and effectively to protect the family’s well-being and privacy.

Rapid technological developments provide opportunities for operational efficiencies, as well as being an area that needs to be managed for the family in terms of disruption and risk.

Risk management can encompass many aspects and is a complex area that needs to be carefully integrated into a family’s overall wealth management strategy.

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