Direct investment in private companies can deliver returns far exceeding those of private equity and other asset classes while also providing attractive diversification and increased control. The potential for outsize returns, however, comes with increased risk, meaning investors must carefully assess the various financial, organizational and managerial risks involved in this type of investment.
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Four basic hedging techniques – long/short, covered call, buy/write indexing and index put options – represent varying levels of risk but, used appropriately, may reduce portfolio volatility and smooth overall returns. Defensive hedging, techniques designed to protect against loss, may even be well-suited for cautious or conservative investors.
It is at the turning points, both market highs and lows, that investors can either increase or forfeit large portions of their portfolios. These are also the times when they can make the wrong decisions. But with the right frame of mind and a willingness to do what others won't, investors can take advantage of the opportunities created by volatile markets.
A contingency plan helps ensure that a single or multi-family office is prepared to deal with a disaster effectively, minimizing any financial loss, reputational damage, irreparable damage to fundamental operations and legal liability. Such a plan should address continuance imperatives in three fundamental areas: personnel performance, business processes and critical technologies.
Effective collections security is the application of general security practices centering on concentricity, redundancy and reliability. Ultra-wealthy collectors are wise to examine the relevant work experience of prospective vendors to determine both their credentials and their ability to protect valuable items.
Protecting assets is an ever-present reality in the information age. From the courtesy checks from a credit card company to Gmail, Twitter and Facebook, there is an abundance of fertile ground for financial crime. The good news is that there are a multitude of practical tips and safeguards everyone can implement to preserve their identity and property.
Criminal justice scholars have systematically demonstrated that subjective indicators, such as collective perceptions of economic hardship, are sufficient to influence crime rates. However, research focusing on solely objective indicators, such as unemployment rates, gross product per capita and inflation levels, has shown a murkier relationship between economic conditions and crime.
An annual survey of senior executives globally finds that theft of electronic data has overtaken physical theft as the most frequently reported fraud. The survey finds fear of fraud is dissuading companies from operating in other countries.
This comprehensive report discusses organizational pandemic preparedness and response as well as business continuity management, provides background information on the H1N1 virus and human influenza pandemics, highlights the international implications of a pandemic and outlines some of the potential insurance coverage issues related to pandemics.
Nobody wants to worry about health security, but the reality is that prudent individuals who have the means and capability of risk assessment and management in other areas of their lives cannot assume that they are invincible or that either the government or the medical system will be adequate to fill in for a lack of health risk management.