Measuring and managing uncertainty comes top of priority list for family offices

Family offices need to be aware of non-financial risks and in particular the dangers of not putting in place adequate insurance and risk management procedures. Ted Wilson of Scorpio Partnership explains.

Money may be able to buy love, but it certainly cannot give someone the ability to predict the future. As the world becomes more complex, there is growing interest in the measurement and management of uncertainty for families of significant wealth.

In step with the rest of the market, family offices - entities that privately manage the wealth and affairs of such families - are adopting an increasingly sophisticated attitude to measuring and controlling financial risk.

Three areas of risk

In order