RECAP: 2018 FOX Family Office Forum


Protecting Your Wealth Through an Enterprise Risk Management Approach

Mark Galante, President, Field Operations, PURE Insurance
James P. Kane, CIC, CRM, Senior Vice President of Personal Risk, USI Insurance Services, LLC

Session Description: 

Enterprise Risk Management offers a robust approach to managing risk for families developing a cost effective, comprehensive plan taking into consideration the rapidly evolving nature of a clients’ needs. It takes a holistic approach to identifying, defining, quantifying, analyzing, and providing solutions to all the identifiable exposures facing family offices. This session reviewed the Five Steps of Risk Management, Loss Control, Loss Mitigation, and Transfer of Risk. Case studies were then provided that demonstrated the emerging exposures with current and future generations and how to proactively address the needs of complex families.


Key Takeaways: 
  • In an Enterprise approach to Risk Management, it is important to consider all sides of risk similar to investments. Consider designing protection for the most frequent and most severe exposures first, and control loss or mitigate damage as a first line of defense (sometimes a policy is not the answer). Finally, leverage premiums and accounts to maximize your protection.
  • The five steps to Enterprise Risk Management include:
    • Identify risks
    • Analyze
    • Design a plan
    • Implement
    • Monitor & adjust
  • Some common risks for ultra-wealthy families include: board participation; financial or estate plans; second homes, rental properties or vacant land; domestic help or contractors; pets (including dogs, cats, horses); collections of jewelry, fine arts, or wine; inexperienced drivers; pool/hot tub/trampoline; frequent domestic or international travel; and recreational vehicles
  • Surprisingly, the largest total claims cost for PURE (across all lines of business) was water damage other than flooding (burst pipes, etc.). With winter temperatures dropping across the globe, being mindful of unoccupied homes that might be at risk of exposure to freezing temperatures is important for preventing losses. Planning and insights are a key element to reducing exposure to damage due to water.
  • Cyber-risk is on the rise, and the human element is the most significant risk factor (responding to phishing, social engineering, etc.). A recent survey of CEOs identified cyber security as their greatest personal risk, and the one they are least confident with their ability to protect themselves and their families. Cybercrime is on the rise, with attacks becoming more sophisticated and presenting new risks to members’ wealth.

Download the Session Presentation > 
(FOX Members only)