The author of this commentary argues that outsourcing is a family office’s best option to get expertise without the burden of taxing internal resources.
As this news service well knows from conversations we have with executive search firms, family offices, banks and other industry players, there’s a talent shortage out there. Whatever else the global economic situation throws up, it hasn’t stopped a regular talking point about the need to build and attract talent.
In this sponsored article, Kate Norris, managing principal, Atténuer Risk, sets out the case for outsourcing risk management so that family offices can use their in-house capabilities where they achieve the strongest results.
The consistent message amongst family office executives is the need for talent. The talent drought is driving many family offices to consider outsourcing certain services so that they can concentrate their resources on other in-house needs that may not be as easy to outsource. Family office executives are increasingly looking for external help with administrative services such as bill pay, bookkeeping, and performance reporting. These are easy tasks to delegate, and they can free up team member resources. However, an area that family office leaders overlook for outsourcing is risk management.
Today, most family offices have team members overseeing the placement and payment of policies alongside their other responsibilities. Simply paying premiums and acting as a go-between for the family and broker is not the right approach to risk management. The truth is that risk management isn’t as simple as you might think.
Having the right strategy to contain risk is becoming increasingly complex, especially in the context of changes in the insurance marketplace. Outsourcing risk management can bring many benefits. These advantages include:
1.) Freeing up existing team members to focus
on other tasks;
2.) Creation of strategic risk management architecture;
3.) Tactical level execution to work with multiple brokers to place coverage;
4.) Experts capable of providing guidance on the things that an insurance policy does not cover; and
5.) Creation of resiliency plans.
Outsourcing is a family office’s best option to get expertise without the burden of taxing internal resources. As the dedicated family office, it is your responsibility to look at the risk architecture in its entirety, employ mitigation strategies, and identify risk transfer solutions on both sides of the balance sheet. Family offices today need a risk management team that doesn’t simply sell policies, but rather can give unbiased risk management advice, guidance, and execution at both a strategic and tactical level.
If you are interested in exploring how outsourcing can help protect your family and the life you’ve invested in, contact us today: Attenuer Risk – Risk & Resiliency Solutions