Maintaining a wealthy family’s desire for discretion and a private life is a key responsibility of a family office, one that has become tougher to carry out in an increasingly digital world.
On Thursday, Citi Private Bank released a white paper that focuses on threats to ultra-high-net-worth families’ privacy, and explains how they and their family offices can identify, manage and diminish those risks.
A study late last year showed that 28% of international families, family offices and family businesses had been targets of cyberattacks.
“Without a global standard for privacy protection in a progressively digital world, it is becoming increasingly complex for our clients to safeguard the privacy of wealthy families,” the white paper’s author Edward Marshall, director of Citi Private Bank’s global family office group, said in a statement.
“Many times, our clients’ daily activities can make them vulnerable to privacy breaches. We aim to provide family offices with simple but meaningful precautionary measures to address these risks and avoid reputational impacts,”
Why the focus on privacy? The paper lays out several reasons, including a family’s “fundamental right intrinsically linked to personal autonomy and dignity” that requires no justification.
Beyond that is the inherent link between privacy and a family’s reputation, which requires protection of private truths as well as a defense against falsehoods.