Reframing risk management in Australian Family Offices
At Lineage Group, we partner with business families and family offices to build the governance and risk disciplines that enable confident, values-aligned decision-making. In an era of rapid disruption and rising complexity, the imperative to proactively manage risk has never been greater.
Australian Family Offices face a tipping point in risk exposure
From cyberattacks and geopolitical instability to shifting tax laws and rising demands for transparency, family offices across Australia are confronting unprecedented complexity. Yet most still lack a structured, forward-looking risk management approach. At Lineage, we see this as a governance challenge, not just a technical one.
According to the UBS Global Family Office Report 2023, more than 60% of global family offices now rank risk as a top strategic concern. Despite this, many Australian family offices continue to operate without a formal risk framework or dedicated risk leadership which is a critical gap as family wealth structures become more exposed and interdependent.
Increased efficiency brings increased vulnerability
In today’s digital economy, increased connectivity has made Single Family Offices (SFOs) more efficient, but also more vulnerable. The Australian Cyber Security Centre (ACSC) reports a cybercrime every six minutes, many targeting wealth management groups. Family offices, often lean and less fortified, are especially at risk.
Lineage’s approach: embedding risk into Family Office governance
At Lineage, we believe risk is not a siloed function, but a lens through which strategy, governance, and legacy are viewed. Our work with families includes:
Clarifying risk appetite and tolerance, aligned to both commercial ambition and family values
Strengthening governance maturity, including defining roles such as Chief Risk Officer or risk leads
Facilitating family-wide engagement so that stakeholders across generations understand, support, and are equipped to manage risk
By integrating risk into governance frameworks – from advisory boards to investment committees – families are better able to navigate complexity while maintaining unity and confidence in decision-making.
A multi-layered risk landscape needs nuanced support
Cybersecurity, regulatory changes, ESG scrutiny, and tax reform all now fall within the family office risk domain. With increasing interconnection across wealth structures and jurisdictions, risk touches reputation, compliance, and purpose.
Lineage works across these domains, bringing in specialists where needed while helping families maintain strategic control. We routinely advise on:
Risk mapping and incident response planning
Insurance and legal protections
Data protection, cyber posture and outsourcing decisions
Governance during succession, restructuring, or new investments
We also stress-test family office governance against both technical threats and family dynamics – because in many cases, relationship risks are just as potent as market ones.
Strategic resourcing: Knowing when to build or buy
Not all family offices need full in-house risk functions. In fact, our experience confirms UBS findings, that globally more than half of family offices now outsource some cybersecurity operations. In Australia, where skilled resources are scarce and costs high, a hybrid model - internal leadership with external expertise – is often the most effective.
Lineage helps clients evaluate the “build vs. buy” equation across cyber, compliance, operational and physical security, ensuring alignment with scale, complexity, and cultural fit.
Risk is not a project – It’s a practice
A robust risk framework is not static. It must evolve as families grow, structures change, and investments diversify. We recommend regular reviews triggered by life events (e.g., succession), structural shifts (e.g., entering new jurisdictions), or external events (e.g., regulatory changes).
A robust risk framework isn't a "set and forget" process. It should be reviewed and stress-tested regularly, particularly after life events (e.g. intergenerational transfers), structural changes (e.g. new entities or jurisdictions), external events (e.g. regulatory changes).
We support clients in scenario planning, governance simulations, and bespoke education programs, ensuring families can respond with foresight.
From caution to confidence
At Lineage, we understand that managing risk starts with preparation. The best stewards of generational wealth are those who embrace complexity, establish clear procedures, and build governance that can adapt.
By embedding fit-for-purpose risk frameworks, our family office clients:
Protect both tangible and reputational capital
Align decision-making with long-term family values
Build trust across generations and advisors
Enhance long-term sustainability and impact
Risk is a constant, but with clear structures, trusted advice, and alignment across the family, it's something family offices can manage with confidence.
To find out more about how we can help with your individual family office requirements, please get in touch to arrange a confidential discussion.