In periods of economic uncertainty, family business directors often look to financial risk. However, financial risk is only one part of the equation. There’s another risk directors should consider, but typically don’t.
Financial risk is visible. It shows up in cash flow shortages, high debt levels, and inadequate—or even informal—accounting. For directors, financial risk takes center stage because it demands immediate attention.
In some cases, though, operating risk is equally (or more!) important than financial risk. This article explains why—and the need to balance the two.
Become a Member for Your Expertly Curated Advice
Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.