Risk Management and Compliance in Family Offices
Expert-defined terms from the Professional Certificate in Family Office Management course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
AIFM Directive refers to the Alternative Investment Fund Managers Directive, a E… #
AIFM Directive refers to the Alternative Investment Fund Managers Directive, a European Union law that regulates the management of alternative investment funds, including those used by family offices, and it is related to terms such as compliance and risk management.
Anti #
Money Laundering refers to the set of laws, regulations, and procedures intended to prevent and detect the concealment of illegally obtained funds, and it is related to terms such as know your customer and due diligence.
Audit Committee refers to a committee established by the board of directors of a… #
Audit Committee refers to a committee established by the board of directors of a company to oversee the audit process and ensure the integrity of the company's financial reporting, and it is related to terms such as internal control and financial reporting.
Beneficial Owner refers to the individual who ultimately owns or controls a comp… #
Beneficial Owner refers to the individual who ultimately owns or controls a company, trust, or other entity, and it is related to terms such as tax planning and estate planning.
Business Continuity Planning refers to the process of developing strategies and… #
Business Continuity Planning refers to the process of developing strategies and procedures to ensure that a company can continue to operate in the event of a disruption, such as a natural disaster or cyber attack, and it is related to terms such as risk assessment and crisis management.
Chief Compliance Officer refers to the individual responsible for overseeing and… #
Chief Compliance Officer refers to the individual responsible for overseeing and implementing a company's compliance program, and it is related to terms such as regulatory compliance and risk management.
Compliance Program refers to the set of policies, procedures, and processes impl… #
Compliance Program refers to the set of policies, procedures, and processes implemented by a company to ensure compliance with laws, regulations, and industry standards, and it is related to terms such as compliance officer and risk management.
Confidentiality Agreement refers to a contract that requires parties to maintain… #
Confidentiality Agreement refers to a contract that requires parties to maintain the confidentiality of sensitive information, and it is related to terms such as non-disclosure and data protection.
Corporate Governance refers to the system of rules, practices, and processes by… #
Corporate Governance refers to the system of rules, practices, and processes by which a company is directed and controlled, and it is related to terms such as board of directors and shareholder rights.
Custodian refers to a financial institution that holds and safeguards a company'… #
Custodian refers to a financial institution that holds and safeguards a company's or individual's assets, and it is related to terms such as asset protection and security services.
Data Protection refers to the set of laws, regulations, and procedures intended… #
Data Protection refers to the set of laws, regulations, and procedures intended to protect the privacy and security of personal data, and it is related to terms such as cyber security and data breach.
Due Diligence refers to the process of conducting a thorough investigation and a… #
Due Diligence refers to the process of conducting a thorough investigation and analysis of a potential investment or business opportunity, and it is related to terms such as risk assessment and investment analysis.
Enterprise Risk Management refers to the process of identifying, assessing, and… #
Enterprise Risk Management refers to the process of identifying, assessing, and mitigating risks that could impact a company's ability to achieve its objectives, and it is related to terms such as risk assessment and risk management.
Family Office refers to a private company that manages the financial and persona… #
Family Office refers to a private company that manages the financial and personal affairs of a wealthy family, and it is related to terms such as wealth management and estate planning.
Financial Planning refers to the process of developing a comprehensive plan for… #
Financial Planning refers to the process of developing a comprehensive plan for managing an individual's or family's financial resources, and it is related to terms such as investment planning and retirement planning.
Financial Reporting refers to the process of preparing and presenting financial… #
Financial Reporting refers to the process of preparing and presenting financial statements that provide stakeholders with a clear and accurate picture of a company's financial performance and position, and it is related to terms such as accounting standards and auditing procedures.
Fiduciary Duty refers to the obligation of a person or company to act in the bes… #
Fiduciary Duty refers to the obligation of a person or company to act in the best interests of another party, such as a client or beneficiary, and it is related to terms such as trust services and investment management.
General Data Protection Regulation refers to the European Union law that regulat… #
General Data Protection Regulation refers to the European Union law that regulates the collection, use, and protection of personal data, and it is related to terms such as data protection and cyber security.
Governance refers to the system of rules, practices, and processes by which a co… #
Governance refers to the system of rules, practices, and processes by which a company or organization is directed and controlled, and it is related to terms such as board of directors and shareholder rights.
Hedge Fund refers to a type of investment fund that uses a range of strategies t… #
Hedge Fund refers to a type of investment fund that uses a range of strategies to generate returns, often through the use of leverage and derivatives, and it is related to terms such as alternative investments and asset management.
Information Security refers to the set of policies, procedures, and processes in… #
Information Security refers to the set of policies, procedures, and processes intended to protect the confidentiality, integrity, and availability of information, and it is related to terms such as cyber security and data protection.
Insider Trading refers to the buying or selling of securities by individuals wit… #
Insider Trading refers to the buying or selling of securities by individuals with access to non-public information about the company, and it is related to terms such as securities law and regulatory compliance.
Insurance refers to a contract that transfers risk from one party to another, of… #
Insurance refers to a contract that transfers risk from one party to another, often in exchange for a premium, and it is related to terms such as risk management and asset protection.
Internal Control refers to the set of policies, procedures, and processes implem… #
Internal Control refers to the set of policies, procedures, and processes implemented by a company to ensure the accuracy and reliability of its financial reporting and to prevent fraud and errors, and it is related to terms such as financial reporting and auditing procedures.
Investment Committee refers to a committee established by a company or family of… #
Investment Committee refers to a committee established by a company or family office to oversee and make decisions about investments, and it is related to terms such as investment strategy and portfolio management.
Investment Management refers to the process of managing investments on behalf of… #
Investment Management refers to the process of managing investments on behalf of a client or beneficiary, and it is related to terms such as asset management and portfolio management.
Know Your Customer refers to the set of laws, regulations, and procedures intend… #
Know Your Customer refers to the set of laws, regulations, and procedures intended to prevent and detect money laundering and other financial crimes, and it is related to terms such as anti-money laundering and due diligence.
Limited Partnership refers to a type of partnership that provides liability prot… #
Limited Partnership refers to a type of partnership that provides liability protection for limited partners, and it is related to terms such as partnership agreement and tax planning.
Money Laundering refers to the process of concealing the source of illegally obt… #
Money Laundering refers to the process of concealing the source of illegally obtained funds, often through the use of financial transactions and institutions, and it is related to terms such as anti-money laundering and compliance program.
Net Worth refers to the total value of an individual's or family's assets minus… #
Net Worth refers to the total value of an individual's or family's assets minus their liabilities, and it is related to terms such as wealth management and estate planning.
Offshore Bank Account refers to a bank account held in a foreign country, often… #
Offshore Bank Account refers to a bank account held in a foreign country, often for the purpose of tax planning or asset protection, and it is related to terms such as tax planning and asset protection.
Operating Agreement refers to a contract that outlines the terms and conditions… #
Operating Agreement refers to a contract that outlines the terms and conditions of a company's operations, including the roles and responsibilities of its owners and managers, and it is related to terms such as partnership agreement and corporate governance.
Philanthropy refers to the practice of donating time, money, or resources to cha… #
Philanthropy refers to the practice of donating time, money, or resources to charitable causes, and it is related to terms such as charitable giving and foundation management.
Portfolio Management refers to the process of managing a collection of investmen… #
Portfolio Management refers to the process of managing a collection of investments, often with the goal of achieving a specific return or risk profile, and it is related to terms such as investment strategy and asset allocation.
Proxy Statement refers to a document that provides information about a company's… #
Proxy Statement refers to a document that provides information about a company's governance, executive compensation, and other matters, often in advance of a shareholder meeting, and it is related to terms such as corporate governance and shareholder rights.
Regulatory Compliance refers to the set of laws, regulations, and industry stand… #
Regulatory Compliance refers to the set of laws, regulations, and industry standards that a company must comply with, often in areas such as financial reporting, tax, and employment, and it is related to terms such as compliance program and risk management.
Risk Assessment refers to the process of identifying, evaluating, and prioritizi… #
Risk Assessment refers to the process of identifying, evaluating, and prioritizing risks that could impact a company's ability to achieve its objectives, and it is related to terms such as risk management and enterprise risk management.
Risk Management refers to the process of identifying, assessing, and mitigating… #
Risk Management refers to the process of identifying, assessing, and mitigating risks that could impact a company's ability to achieve its objectives, and it is related to terms such as risk assessment and compliance program.
Securities Law refers to the set of laws and regulations that govern the issuanc… #
Securities Law refers to the set of laws and regulations that govern the issuance, trading, and ownership of securities, such as stocks and bonds, and it is related to terms such as investment law and regulatory compliance.
Succession Planning refers to the process of developing a plan for the transfer… #
Succession Planning refers to the process of developing a plan for the transfer of ownership or management of a company, often in anticipation of the retirement or departure of a key executive or owner, and it is related to terms such as estate planning and family governance.
Tax Planning refers to the process of developing strategies and plans to minimiz… #
Tax Planning refers to the process of developing strategies and plans to minimize tax liabilities, often through the use of tax deductions, credits, and other incentives, and it is related to terms such as tax law and estate planning.
Trust refers to a legal arrangement in which one party holds property or assets… #
Trust refers to a legal arrangement in which one party holds property or assets for the benefit of another party, often with the goal of providing asset protection or tax planning benefits, and it is related to terms such as estate planning and asset protection.
Wealth Management refers to the process of managing an individual's or family's… #
Wealth Management refers to the process of managing an individual's or family's financial resources, often with the goal of achieving long-term financial goals and objectives, and it is related to terms such as investment management and estate planning.
Will refers to a legal document that outlines an individual's wishes for the dis… #
Will refers to a legal document that outlines an individual's wishes for the distribution of their assets after their death, and it is related to terms such as estate planning and probate law.
Asset Allocation refers to the process of dividing a portfolio among different a… #
Asset Allocation refers to the process of dividing a portfolio among different asset classes, such as stocks, bonds, and real estate, often with the goal of achieving a specific return or risk profile, and it is related to terms such as investment strategy and portfolio management.
Asset Protection refers to the set of strategies and plans used to protect asset… #
Asset Protection refers to the set of strategies and plans used to protect assets from creditors, lawsuits, and other risks, often through the use of trusts, limited partnerships, and other legal arrangements, and it is related to terms such as estate planning and tax planning.
Audit refers to an examination of a company's financial statements and records,… #
Audit refers to an examination of a company's financial statements and records, often conducted by an independent auditor, and it is related to terms such as financial reporting and internal control.
Business Ethics refers to the set of principles and values that guide a company'… #
Business Ethics refers to the set of principles and values that guide a company's behavior and decision-making, often in areas such as employee conduct, customer relations, and environmental sustainability, and it is related to terms such as corporate governance and compliance program.
Cash Flow refers to the movement of money into or out of a company or portfolio,… #
Cash Flow refers to the movement of money into or out of a company or portfolio, often used to measure a company's ability to generate earnings and pay its debts, and it is related to terms such as financial management and investment analysis.
Code of Conduct refers to a set of principles and guidelines that outline the ex… #
Code of Conduct refers to a set of principles and guidelines that outline the expected behavior and conduct of a company's employees, often in areas such as ethics, compliance, and employee relations, and it is related to terms such as business ethics and compliance program.
Compliance Officer refers to the individual responsible for overseeing and imple… #
Compliance Officer refers to the individual responsible for overseeing and implementing a company's compliance program, often in areas such as regulatory compliance, risk management, and internal control, and it is related to terms such as compliance program and risk management.
Conflict of Interest refers to a situation in which an individual or company has… #
Conflict of Interest refers to a situation in which an individual or company has competing interests or loyalties, often in areas such as business, finance, or law, and it is related to terms such as ethics and compliance program.
Corporate Social Responsibility refers to the set of principles and practices th… #
Corporate Social Responsibility refers to the set of principles and practices that guide a company's behavior and decision-making, often in areas such as environmental sustainability, social justice, and community engagement, and it is related to terms such as business ethics and compliance program.
Custody refers to the act of holding or safeguarding assets on behalf of a clien… #
Custody refers to the act of holding or safeguarding assets on behalf of a client or beneficiary, often by a financial institution or custodian, and it is related to terms such as asset protection and security services.
Data Breach refers to the unauthorized access or disclosure of sensitive informa… #
Data Breach refers to the unauthorized access or disclosure of sensitive information, often resulting in a security incident or data loss, and it is related to terms such as cyber security and data protection.
Discretionary Management refers to the process of managing investments or assets… #
Discretionary Management refers to the process of managing investments or assets on behalf of a client or beneficiary, often with the goal of achieving a specific return or risk profile, and it is related to terms such as investment management and portfolio management.
Diversification refers to the process of spreading investments or assets across… #
Diversification refers to the process of spreading investments or assets across different classes or categories, often with the goal of reducing risk or increasing returns, and it is related to terms such as investment strategy and portfolio management.
Due Diligence Report refers to a document that provides an analysis and evaluati… #
Due Diligence Report refers to a document that provides an analysis and evaluation of a potential investment or business opportunity, often including an assessment of the risks and benefits, and it is related to terms such as investment analysis and risk assessment.
Estate Planning refers to the process of developing a plan for the distribution… #
Estate Planning refers to the process of developing a plan for the distribution and management of an individual's or family's assets after their death, often including the use of wills, trusts, and other legal arrangements, and it is related to terms such as tax planning and asset protection.
Family Governance refers to the set of principles and practices that guide a fam… #
Family Governance refers to the set of principles and practices that guide a family's behavior and decision-making, often in areas such as family business, wealth management, and philanthropy, and it is related to terms such as family office and wealth management.
Financial Statement refers to a document that provides a snapshot of a company's… #
Financial Statement refers to a document that provides a snapshot of a company's financial position and performance, often including the balance sheet, income statement, and cash flow statement, and it is related to terms such as financial reporting and accounting standards.
Fund Administration refers to the set of services and processes used to support… #
Fund Administration refers to the set of services and processes used to support the operation and management of investment funds, often including tasks such as accounting, compliance, and investor relations, and it is related to terms such as investment management and portfolio management.
Governance Structure refers to the set of principles and practices that guide a… #
Governance Structure refers to the set of principles and practices that guide a company's or organization's governance, often including the board of directors, executive management, and shareholder rights, and it is related to terms such as corporate governance and compliance program.
Hedge Fund Strategy refers to the set of investment strategies and techniques us… #
Hedge Fund Strategy refers to the set of investment strategies and techniques used by hedge funds, often including the use of derivatives, leverage, and other alternative investments, and it is related to terms such as alternative investments and asset management.
Information Technology refers to the set of tools and systems used to support th… #
Information Technology refers to the set of tools and systems used to support the operation and management of a company or organization, often including hardware, software, and networking systems, and it is related to terms such as cyber security and data protection.
Insurance Policy refers to a contract that provides protection against specific… #
Insurance Policy refers to a contract that provides protection against specific risks or losses, often in exchange for a premium, and it is related to terms such as risk management and asset protection.
Internal Audit refers to an examination of a company's internal controls and pro… #
Internal Audit refers to an examination of a company's internal controls and processes, often conducted by an independent auditor or audit committee, and it is related to terms such as financial reporting and internal control.
Investment Analysis refers to the process of evaluating and analyzing investment… #
Investment Analysis refers to the process of evaluating and analyzing investment opportunities, often including an assessment of the risks and benefits, and it is related to terms such as investment management and portfolio management.
Investment Objective refers to the specific goal or target of an investment stra… #
Investment Objective refers to the specific goal or target of an investment strategy, often including the desired return, risk profile, or other performance metrics, and it is related to terms such as investment strategy and portfolio management.
Investment Portfolio refers to a collection of investments or assets, often mana… #
Investment Portfolio refers to a collection of investments or assets, often managed by a portfolio manager or investment advisor, and it is related to terms such as investment management and asset allocation.
Investment Strategy refers to the set of principles and guidelines that guide an… #
Investment Strategy refers to the set of principles and guidelines that guide an investment decision-making process, often including the use of specific investment techniques, asset classes, or risk management strategies, and it is related to terms such as investment management and portfolio management.
Key Performance Indicator refers to a measure or metric used to evaluate the per… #
Key Performance Indicator refers to a measure or metric used to evaluate the performance of a company, investment, or portfolio, often including financial metrics such as return on investment or risk-adjusted return, and it is related to terms such as investment analysis and performance measurement.
Limited Liability Company refers to a type of business structure that provides l… #
Limited Liability Company refers to a type of business structure that provides liability protection for its owners, often used for tax planning, asset protection, or other business purposes, and it is related to terms such as partnership agreement and corporate governance.
Market Risk refers to the risk that an investment or portfolio will decline in v… #
Market Risk refers to the risk that an investment or portfolio will decline in value due to changes in market conditions, often including fluctuations in interest rates, commodities, or other market factors, and it is related to terms such as risk management and investment analysis.
Next Generation refers to the younger members of a family, often including child… #
Next Generation refers to the younger members of a family, often including children, grandchildren, or other relatives, and it is related to terms such as family governance and succession planning.
Offshore Company refers to a company or entity established in a foreign country,… #
Offshore Company refers to a company or entity established in a foreign country, often for the purpose of tax planning, asset protection, or other business purposes, and it is related to terms such as tax planning and asset protection.
Operating Model refers to the set of processes, systems, and structures used to… #
Operating Model refers to the set of processes, systems, and structures used to support the operation and management of a company or organization, often including business processes, organizational design, and technology systems, and it is related to terms such as business strategy and corporate governance.
Operational Risk refers to the risk that a company or organization will experien… #
Operational Risk refers to the risk that a company or organization will experience losses due to inadequate or failed internal processes, often including people, systems, or technology, and it is related to terms such as risk management and compliance program.
Partnership Agreement refers to a contract that outlines the terms and condition… #
Partnership Agreement refers to a contract that outlines the terms and conditions of a partnership, often including the roles and responsibilities of the partners, and it is related to terms such as partnership structure and tax planning.
Philanthropic Strategy refers to the set of principles and guidelines that guide… #
Philanthropic Strategy refers to the set of principles and guidelines that guide a philanthropic effort or initiative, often including the use of specific philanthropic techniques, grant-making strategies, or other charitable giving approaches, and it is related to terms such as philanthropy and charitable giving.
Portfolio Manager refers to the individual or team responsible for managing a po… #
Portfolio Manager refers to the individual or team responsible for managing a portfolio of investments or assets, often including the development of investment strategies, asset allocation, and risk management, and it is related to terms such as investment management and portfolio management.
Private Equity refers to the set of investment strategies and techniques used to… #
Private Equity refers to the set of investment strategies and techniques used to invest in private companies, often including the use of buyouts, venture capital, or other alternative investments, and it is related to terms such as alternative investments and asset management.
Regulatory Environment refers to the set of laws, regulations, and industry stan… #
Regulatory Environment refers to the set of laws, regulations, and industry standards that govern a company's or organization's operations, often including areas such as financial reporting, tax compliance, and employment law, and it is related to terms such as regulatory compliance and compliance program.
Risk Assessment refers to the process of identifying, evaluating, and prioritizi… #
Risk Assessment refers to the process of identifying, evaluating, and prioritizing risks that could impact a company's or organization's ability to achieve its objectives, often including the use of risk management frameworks, risk matrices, or other risk assessment tools, and it is related to terms such as risk management and compliance program.
Risk Management Framework refers to the set of principles, guidelines, and proce… #
Risk Management Framework refers to the set of principles, guidelines, and processes used to manage risk, often including the identification, assessment, prioritization, and mitigation of risks, and it is related to terms such as risk management and compliance program.
Security Services refers to the set of services and processes used to protect a… #
Security Services refers to the set of services and processes used to protect a company's or organization's assets, often including the use of security guards, surveillance systems, or other security measures, and it is related to terms such as asset protection and data protection.
Social Responsibility refers to the set of principles and practices that guide a… #
Social Responsibility refers to the set of principles and practices that guide a company's or organization's behavior and decision-making, often in areas such as environmental sustainability, social justice, and community engagement, and it is related to terms such as business ethics and compliance program.
Sovereign Wealth Fund refers to a type of investment fund or vehicle established… #
Sovereign Wealth Fund refers to a type of investment fund or vehicle established by a government or sovereign entity, often used to manage and invest a country's financial resources, and it is related to terms such as investment management and asset allocation.
Stewardship refers to the set of principles and practices that guide the managem… #
Stewardship refers to the set of principles and practices that guide the management and oversight of a company's or organization's assets, often including the use of specific investment strategies, risk management techniques, or other asset management approaches, and it is related to terms such as investment management and portfolio management.
Succession Plan refers to a plan or strategy for the transfer of ownership or ma… #
Succession Plan refers to a plan or strategy for the transfer of ownership or management of a company or organization, often including the development of future leaders, the transition of key roles or responsibilities, or other succession-related activities, and it is related to terms such as succession planning and family governance.
Sustainable Investing refers to the set of investment strategies and techniques… #
Sustainable Investing refers to the set of investment strategies and techniques used to invest in companies or assets that have a positive impact on the environment, society, or governance, often including the use of environmental, social, and governance (ESG) criteria or other sustainable investing approaches, and it is related to terms such as investment management and portfolio management.
Tax Efficiency refers to the set of strategies and techniques used to minimize t… #
Tax Efficiency refers to the set of strategies and techniques used to minimize tax liabilities, often including the use of tax deductions, credits, or other tax planning approaches, and it is related to terms such as tax planning and estate planning.
Tax Planning refers to the process of developing strategies and plans to minimiz… #
Tax Planning refers to the process of developing strategies and plans to minimize tax liabilities, often including the use of specific tax planning techniques, such as tax deductions, credits, or other tax planning approaches, and it is related to terms such as tax law and estate planning.
Transaction Risk refers to the risk that a company or organization will experien… #
Transaction Risk refers to the risk that a company or organization will experience losses due to the failure or inadequacy of a specific transaction or business process, often including risks related to payment processing, supply chain management, or other business operations, and it is related to terms such as risk management and compliance program.
Trust Services refers to the set of services and processes used to support the e… #
Trust Services refers to the set of services and processes used to support the establishment, management, and administration of trusts, often including the use of trust agreements, trust accounting, or other trust-related activities, and it is related to terms such as estate planning and asset protection.
Valuation refers to the process of determining the value of a company, investmen… #
Valuation refers to the process of determining the value of a company, investment, or asset, often including the use of specific valuation techniques, such as discounted cash flow analysis or other valuation methods, and it is related to terms such as investment analysis and portfolio management.
Wealth Transfer refers to the process of transferring wealth from one generation… #
Wealth Transfer refers to the process of transferring wealth from one generation to the next, often including the use of specific wealth transfer strategies, such as gifts, trusts, or other estate planning techniques, and it is related to terms such as estate planning and tax planning.
Will Contest refers to a dispute or challenge to the validity of a will, often i… #
Will Contest refers to a dispute or challenge to the validity of a will, often including claims of undue influence, lack of capacity, or other issues related to the will's execution or administration, and it is related to terms such as estate planning and probate law.