NEW YORK, Jan. 21, 2015 (GLOBE NEWSWIRE) -- Crystal & Company, a leading strategic risk and insurance advisor, and Family Office Metrics LLC, a premier consultancy for family offices, announced today the release of the 2015 Family Enterprise Risk Index-Industry Scorecard. The first-ever Family Enterprise Risk Index was created to gain insight into the knowledge, implementation, and effectiveness of risk management practices by family enterprises. With 159 respondents, it is one of the broadest studies ever on the family business and family office community.
"The Family Enterprise Risk study tells us what we've consistently seen—the majority of family enterprises are challenged to address risk at an enterprise-wide level whether an operating company, a family office or holding company," said Linda Bourn, Executive Managing Director and leader of Crystal & Company's Family Enterprise Risk Practice. "The findings also suggest family enterprise executives are not currently including the risks to the family itself in their planning process, which is a missed opportunity to protect the family's wealth."
Paul McKibbin, Managing Director of Family Office Metrics, stated, "Having quantitative data to allow family enterprises to benchmark their risk management approach against their peers is not something that is easy to find in this industry. We are excited to be able to provide the family enterprise community with a new baseline as they begin risk management planning in 2015."
The key findings identified in the index by Crystal & Company and Family Office Metrics illustrate that common practices are more often used than best practices:
- While 66% of respondents "strongly agree" or "agree" the family enterprise determines its risk management strategic objectives at the highest level of management, only three out of 10 family enterprises have implemented a risk management review process for the enterprise that includes risks of the family itself.
- The study shows that 52% of participants indicated that "identifying and assessing current and future threats to the organization's assets" is a top priority, yet many are still not taking effective action to develop a process for identifying risk.
- Nearly all (95%) of participants in the study indicated they are well aware of the potential risks to their family and its assets, but only two-thirds of respondents have taken steps toward the implementation of plans to address issues like family conflict, family members seeking liquidation, and asset growth that is too slow for family growth or spending.
This study has been informed by Crystal & Company's unique perspective as an over 80 year old, third generation family enterprise focused on providing strategic risk and insurance advice, and complemented by Family Office Metrics' rigorous analytical approach. Cornell Survey Research Institute administered the survey, to ensure that the data the survey generated would be aggregated independently and would prove statistically reliable.
About Crystal & Company
Crystal & Company (www.crystalco.com) is a leading strategic risk and insurance advisor, addressing clients' risk management, insurance brokerage, and employee benefits consulting needs. The firm is comprised of more than 400 professionals, each distinguished by their technical expertise and industry-specific knowledge, and driven by their passion for client service. Crystal & Company is headquartered in New York with 10 regional offices throughout the country, placing over $1 billion in premiums annually in the global insurance marketplace. Established in 1933, the company has sustained its independence through 80 years and three generations of Crystal family ownership and management.
Crystal & Company is a member of Brokerslink, a global alliance of leading independent insurance brokerages spanning more than 80 countries and 300 cities across the world.
About Family Office Metrics
Family Office Metrics www.familyofficemetrics.com is the premier consultancy for family offices. We create, manage and enhance offices across the world and educate our industry with a wide-range of events throughout the year.
Family Office Metrics, LLC, headquartered in New York, NY was conceived in 2001 when Jon Carroll left the multi-family office where he had worked for seven years previously. Since then, Family Office Metrics has worked with over 140 clients on 200+ projects to deliver total solutions to business, operations and technology problems – solutions designed to evolve with your business.
Family Office Metrics is built upon the experience and expertise of our partners and consultants. While each of our professionals specializes in one of our practice areas, each also brings a range of experience working directly in family offices and in businesses that serve family offices.
CONTACT: Media Contact: Marisha Chinsky Makovsky 212-508-9654 firstname.lastname@example.org
Source:Crystal & Company