Rothstein Kass Family Office Group, a division of New Jersey-based professional services firm Rothstein Kass, said this percentage of family offices offering what it calls “family security services” compares with only around 60% in 2009, and that more than 75% of those surveyed recently reported already having had “direct experience” with security problems.
The release of the Rothstein Kass report coincided with a story in the New York Times last week that noted that Americans now enjoy less economic mobility than their peers in Canada and much of Western Europe.
The resultant sense of frustration among those at the bottom of the wealth ladder to this increasingly obvious lack of mobility, say some in the crisis management and personal security services industry, has been reflected in such movements as Occupy Wall Street—which has as its slogan “We are the 99%” – and that this, in turn, is contributing to growing alarm among many high-net-worth individuals, both in the US and elsewhere.
151 family office heads surveyed
Rothstein Kass said it surveyed some 151 executive directors of family offices in the first half of 2011. Although they represented mainly American family offices, it was not limited to American operations.
Nearly all of those interviewed agreed that the family’s worth made them a target, according to the report, which is entitled Safe & Sound – How Single-Family Offices Are Addressing Family Security.
What is more, “almost 90 percent of [the executive directors surveyed] expect that security threats to their clients will continue to intensify”, the Rothstein Kass researchers said in a summary of their findings.
Rick Flynn, principal and head of the Rothstein Kass Family Office Group, noted that most wealthy individuals and their families today are confronting “an ever-expanding array of threats to their security”, as “sinister elements have become more sophisticated in their attacks [and] as technological advances in an increasingly global society enable their malfeasance.
“In recent years, we’ve observed a significant increase in the number of single-family office executive directors that are working in coordination with clients to identify risks and strengthen protections in light of the family’s specific profile.”
When asked to rate significant family security concerns individually, nearly 90% of survey respondents cited “trusting the wrong people” as one of their biggest worries.
Other major concerns included identity theft (78%), property being vandalised or stolen (72%), self or loved ones being assaulted (71%); someone gaining access to personal information (64%)/ percent) and security when traveling (57%).
