In a perfect world, our families would be completely safe all of the time. But sadly, this is not true. We all balance risks, from physical hazards during travel overseas, to a family member’s addiction issues, to vulnerability online. We can only take the wise advice of planning for the worst while hoping for the best.
When it comes to family offices and money management, these risks may not always top the list of discussion points, as they get drowned out by investment talk. That’s where companies like mine come in, using our experience working with high-net-worth investors in financial services to form tangible plans for reputation management and crisis communication — so that when the worst does happen, you are prepared.
How does one even start tackling crisis management?
- Identify what worries you and your family. Is it a broad risk, such as cyberattacks? Or is it more specific, such as an online teenager’s being vulnerable to sextortion? The list could be broad, and it may be long. The important thing is to discuss it and be honest with yourself and your family.
- Develop a messaging platform and response protocols. If a threat becomes a reality, a family should be ready to move quickly and earnestly. Each family member should know his or her role and understand how the family wishes to communicate and handle the situation with a unified front.
- Monitor and adjust the plan. Risks will change with time and circumstance. It is important to continue to assess potential risks before they arise. Additionally, you need to keep abreast of the news and monitor any mention of your family members, companies or related entities.
- Understand the role of the media. Media can be a tool for good or a weapon to be wielded, depending on how one uses it. The same goes for social media. I have found that the appropriate public response to a given situation will depend on the message one wants to get across. But whether it is silence or open communication, the response will be a poignant one.
One only needs to look to Britain’s royal family to see divided examples of crisis management. King Charles and “The Firm” have navigated crises in their family and in the eyes of the public in addition to the usual risks faced by wealthy families, such as vulnerability to compromising photos being published or threats of physical violence. The king’s son Harry and his wife, Meghan, have famously taken on their own messaging and managing of risks. Each side’s approach best reflects their own situations. Both Charles and Harry have tried to assert control — of the message, the public perception and their livelihoods.
The risks facing high-net-worth individuals and family offices are unique and will present challenges that require well-thought-out responses and an understanding of the sensitivity needed to navigate delicate situations. The best-managed situations are ones that you will never hear about or notice, while disasters and floundering responses to a crisis will at best result in reputational damage and at worst cause physical or mental harm to a family member.