To high-net-worth individuals (HNWIs), the family office is considered a quiet room ideal for sensitive conversations and transacting family business. Protecting this space has traditionally been viewed as a logistical necessity supported by a combination of staffing, physical security equipment, and appropriate transit protocols. But is that enough at a time when threats are just as likely to originate in the digital space?
In the modern era, the dividing line between digital and physical risks is no longer as clear as it once was. In fact, the two types of risks are now inextricably linked. This suggests that the most critical element of securing a resilient family office is not the gate out front. It is the quality of the strategic advice decision-makers rely on to guide security strategies.
A Strategy Rather Than a Commodity
Strategic advisory is the new standard for protective intelligence providers like Red5 Security. Its primary point of distinction is the concept of strategy rather than commodity. Let us compare it to traditional security for a better understanding.
Traditional security values presence over nearly everything else. Security companies rely on the presence of guards supported by physical equipment like fences, gates, locks, and alarm systems. Combined in a single package, this represents a commodity HNWIs purchase as needed.
And while physical protection still has a place in modern security, the one-size-fits-all approach that so many security companies take is no longer appropriate.
Strategic advisory is a strategy designed to help HNWIs and their security teams make better decisions. Within the family office environment, it serves three vital purposes:
- Risk Mitigation – Strategic advisory prioritizes corporate threat intelligence to actually look for trouble before it happens. Analysts are continually on the lookout for emerging patterns that signify potential attacks. They look for things like phishing attempts and social engineering aimed at family members or staff.
- Comprehensive Vetting – Protection can fail just as easily within the inner circle as at the perimeter. Therefore, protection must include mitigating insider vulnerabilities through household staff, third-party vendors, etc. Comprehensive vetting covers every person and entity within that inner circle.
- Minimizing Digital Exposure – Managed intelligence services that minimize digital exposure are a core component of strategic advisory. The goal is to monitor a client’s footprint, even extending to his family and close associates, for the purposes of identifying PII overexposure.
A good example of why strategic advisory is so important is the threat of kidnapping or extortion. Forty years ago, the threat of kidnapping was real. A family member could be kidnapped and held for ransom.
Today, however, physical kidnapping is no longer necessary. An HNWI’s data can be hijacked and locked down via ransomware. The threat actor achieves the same result – a huge payday – while remaining safely tucked away in a location halfway around the world.
Data-driven Intelligence Over Guards
Strategic advisory is also a strategy that emphasizes data-driven intelligence over physical guards. Think of it this way: there is a fundamental difference between a risk advisor and a security guard. The latter is trained to react to a breach. The former is trained to ensure that the breach never occurs.
When strategic advisory becomes the centerpiece of family office security, a proactive culture is established. According to Red5, building that culture embeds proactive security so deeply into the family office that it becomes nearly invisible.
Analysts work quietly in the background to inform decision-makers of the current threat landscape. Proactive mitigation efforts can then be deployed with no need for additional physical resources. It is the way family office security should operate in the digital age.
