Family enterprises account for 54% of the U.S. private sector GDP ($7.7 trillion) and 59% of its workforce (83.3 million jobs. Despite their influence on the economy, there has been limited information about the risk management practices of this group.
Accordingly, Alliant Private Client developed the Family Enterprise Risk Index, based on a survey of 145 family enterprises across the United States, the majority of which represent multi-generational families. Respondents included those with a primary role as a member of the management team, executive of either an operating company or of a family office and/or a shareholder. Family members and non-family members were part of the sample.
The responses revealed that while executives within family enterprises are ever-vigilant about business-related risks, they pay significantly less attention to equally important family-related risks, such as reputation management, personal threat assessments and emergency preparedness for natural disasters. In short, the findings shine a light on some very significant risks that family members and enterprises face – perhaps unknowingly – and on a…
