Risk management 101 (trusts, portfolio composition including gold, real estate,

industry knowledge etc, special financial products)?

Key words: 
multi-family office [the article is for one of them]
china 
risk management 
risk mitigation
offsetting risks
family protection
Multi Family office, is a organization that supports multiple families to manage their
wealth. Multifamily office, provides number of services i.e. Risk Management, Objective
Financial Council, Lifestyle Management, Trusteeship, coordination of investment,
investment advice and foundation management. Some Multifamily office offer services such
as management of household staff and making travel arrangements. Multifamily office is a
commercial enterprise established to meet the investment estate planning and life style
and tax service needs for affluent families.

Multifamily office is created in 3 different ways:

1. Single Family office merging with another single family office.

2. To start a team a team of advisors, typically with Investment or legal credentials.

3. An existing institution opens a Multi Family office advisory.

Many families have started their so called family office, where the family owns the family
office and serves the family office. Instead of covering the operative cost, many owner of
family office try to offer their services to other families as well.

Characteristics of Multi Family Office are:

1. Independence

2. Breadth and Integration of service

3. Professional and Diverse skills and Deep specialties

4. High Touch Services

5. Multi generational Planning

6. Outsourcing

7. Focus on Taxable Investor

Some of the benefits of Multi office are:

1. Objective Financial advice

2. Creative solutions and financial issues

3.Clearing house for tax, financial, investment and estate planning

4. Cross fertilization of ideas resulting from solving issues

5. Services are based on asset based

6. Advice from professional teams

7. Coordination of other services

8. Proactive order

9. Delivery of best of breed money managers

10. Negotiated cost savings

11. Integration of client's estate planning, income taxes, investments, philanthropic goals
and family situation

Typical services provided by Multi Family office are; Trustee services, coordination of
professional, cash management, Global asset management, Comprehensive reporting,
Investment manager selection, Portfolio management, Estate planning, philanthropic
planning, Life Insurance analysis, Debt structure and Analysis, Tax return, Foundation
management, Entity Administration, Aircraft consulting, Asset protection, Fraud Detection,
Real Estate Management, Family business Advisory, Family counseling, Sufficiency and
retirement, Document management and record keeping, Bill Payment services and
Personal Financial Statement preparation.

Some of the Notable Multi Family Office are; Bessemer Trust, Stonehage Fleming, eQuine
Holdings.
Risk Management is one of the big services provided by Multi Family Office. It is a way of
identifying, accessing and controlling losses within an organization. Every project which is
being done in any organization, risk management team performs risk management of the
project.It helps to minimize the effect of loss in business at the least possible acceptable
cost. Risk management experts are acquired by organizations to perform Risk
Management.

Risk management is as important in business as business itself.In Enterprise Risk

Management (ERM), the process includes not just risks associated with accidental losses,
but also financial, strategic, operational, and other risks. ERM integrates concepts of
strategic planning, operations management, and internal control in an organization’s risk
management plan.

China has grown economically to new heights, and a lot of credit goes to family business
and which families over there have been for decades. Family business is a big thing
worldwide. Trust is often cited by relationship experts as the key to a long-lasting and
successful union. But trust is also an essential ingredient in your workplace
relationships, impacting employee satisfaction, retention, and even
productivity.Generations over generations have been looking after family business and
have taken it to new heights. China’s family business is non-different to that. There are
business families having business worth Billions of dollars. Their family business is not just
based in China; it has gone worldwide and is bringing a lot of Economic strength and
growth to China.

The compositions of portfolio depend upon number of factors. Some of them are
Investors risk tolerance, investment horizon and amount invested. One rule of thumb is to
limit 5 to 10 percent of gold in your portfolio. First of all, it easy to understand why gold is
so valuable. In many cases, it valuable to understand that gold is, well gold. Gold is an asset
like any other. It can rise or fall due to sentiment. Gold has been valuable for thousands of
year. It’s easy to look at gold and see the tangible value.

Keep in mind, though, that the price of gold rises and falls like other assets. Price
movements aren’t always based on some type of intrinsic value. Perception of how markets
are doing, the strength of the U.S. dollar, and other factors influence what gold is “worth”.
Even though gold has a long history as money, that doesn’t mean it’s the best choice for
your portfolio. That said, there are some good (and some terrible) reasons to include gold
in your portfolio.

Real estate business has always been in demand. Starting a real estate business isn’t for
the faint hearted. What other industry requires you to cold call dozens of leads every day –
only to close five deals first year. But most estimates, 87% of real estate real estate
business fails in first five years. But for those who have what it takes, starting your own
real estate business can absolutely give you the seven-figure job of your dreams

Industry knowledge is most important when a business owner is going to start a venture.
As it said by a lot of entrepreneurs that the first step you take is very important in
whatever field of life you are. Same goes with business; one must have industry knowledge
before starting any business. Industry knowledge is a first step before starting any
business. One must think of ins and outs of the business.

There has to be Risk Management team which does Risk Mitigation. Whatever the
business is being done, there is always risk involved. One just cannot go into business
thinking of profit. There is always a probability of loss. But risk management team helps
mitigating risk by doing homework at the start of business. Risk mitigation helps avoiding
reasonable big loss and is therefore core part of business. Those who just go into business,
without thinking about consequences, dig a hole for themselves.

In China, multi family has always been on the rise but recently, there has been a crisis. The
main reason being that, next or upcoming generation of children is not willing to take up
the business. There can be many reasons to that. One being the children not being raised in
such a way that or lack of culture to bring up children in such a way that they are ready to
take up the business from their ancestors.

Family protection is another prospect which one business investor must think of before
starting business. As it said, Family comes first. Family protection means to have a backup,
if incase business does not goes as planned. Family insurance is one example of it. Family
insurance helps family in case, the source income of the family is not there anymore. Family
protection makes family secure of all the risk attached to family business or in any
business. Family Protection is a type of life insurance that allows you to secure
your family's financial future in the event of your death. It can be a level term insurance
which means it pays out to your dependents if you die within a fixed term.

Works Cited
(n.d.). Retrieved from Chubb: https://www.chubb.com/us-en/individuals-
families/products/home.aspx

China faces family business succession crisis. (n.d.). Retrieved from Financial Times:
https://www.ft.com/content/5fa885ac-c61b-11e7-b30e-a7c1c7c13aab

ERM. (n.d.). Retrieved from TechTarget:

https://searchcio.techtarget.com/definition/enterprise-risk-management

Family Protection Insurance. (n.d.). Retrieved from Betterpoint:

https://www.betterprotect.co.uk/family-protection/

How to build a culture of trust in your company. (n.d.). Retrieved from Fast Company:
https://www.fastcompany.com/90275112/how-to-build-a-culture-of-trust-in-
your-company

How to Build Trust at work. (n.d.). Retrieved from monster:

https://www.monster.com/career-advice/article/6-steps-to-building-trust-in-the-
workplace-hot-jobs

https://www.family-office-advisory.com/family-office/multi-family-office.html. (n.d.).
Retrieved from Multi Family Advisory: https://www.family-office-
advisory.com/family-office/multi-family-office.html

Hubspot. (n.d.). Retrieved from How to Start Real Estate Business?:

https://blog.hubspot.com/sales/real-estate-business

Offset. (n.d.). Retrieved from Investopedia:

https://www.investopedia.com/terms/o/offset.asp

Portfolio Investment. (n.d.). Retrieved from Investopedia:

https://www.investopedia.com/terms/p/portfolio-investment.asp

Pros and Cons of Having Gold in Your Portfolio. (n.d.). Retrieved from The Balance:
https://www.thebalance.com/pros-and-cons-of-having-gold-in-your-portfolio-
4154362
Risk Management. (n.d.). Retrieved from Risk Management Financial Summit: http://safe-
wise.com/phl/downloads/Risk-Management-101.pdf

Risk Mitigation . (n.d.). Retrieved from TechTarget:

https://searchdisasterrecovery.techtarget.com/definition/risk-mitigation

Special Financial Products. (n.d.). Retrieved from ICBC:

https://www.icbc.com.cn/ICBC/EN/CorporateFinance/LoanFinancing/SpecialFina
ncingProducts/

Workplace Trust: Why Trust Is Important In The Workplace. (n.d.). Retrieved from The task
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workplace/