On the outside, it may seem baffling for the affluents to have any ‘threats’. Although, the irony is the richer one gets, the more vulnerable they are to menaces. From fraudulence, kidnapping, cyberthreats, the affluents need to have a robust security system and must plan ahead to stay away from such perils.

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Major Risk Factors

Physical Security

Security systems for residence, inclusive of locks, alarms, motion sensors, has to be autonomous in nature, and should not be connected with any third party apps to avoid risks. Attackers can tamper or remove the modem or try to jam phone lines and even disrupt the Wi-Fi connections, which is why it’s essential that there are extra hard lines or satellites to communicate outbound, if needed. High net worth families are also at risk from their staff members, including household workers which may not seemingly have any bad intentions. It is recommended for families to keep on switching their daily schedules, changing their vehicles, travelling routes and arrival/departure times as frequently as possible.

Cybersecurity

HNWI’s have access to huge sums of extremely confidential data. Owing to the fact that they have high repute, even properties with no economic value can lead to significant harm. Instances like hacking of electronic devices, enabling access to financial confidential details, important medical and legal information, extortion, doxing (the release of personal information about victims and/or their family members, identity theft and identity fraud are raising in number and essential precautionary measures must be taken to curb it.

Collectibles Security

The affluents have a penchant for luxury collectibles – be it fine art, fine wine or fancy cars. Although, these collectibles are all subject to fraud and damage. Owners are required to be very conscious of possible fraud. The primary concern with these priceless prices of art isn’t that they can be simply physically removed or stolen from the residence. It is to determine whether these artifacts are original or identical copies. Unfortunately, technology has simplified the process of copying original pieces. Therefore, rely only on authentic stores for making any purchases.

Travel

While travelling, maintain separate copies of all essential documents, especially passports and credit cards, in a safe, different location, and keep only your initials and a corporate address, ensure to never mention your full name or home address on your luggage. Any travel documentation which is not properly catered can get in the hands of an unreliable person. Using an unknown source of Wi-Fi network can often result in Identity theft. Even though the data can be free, it can lead to you giving away all your personal details without even being aware about it.

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Important Questions to Address & Their Possible Solutions

• When did your family assessed their personal property and liability insurance the last time?

HNWI’s obtain assets with time, and it’s not exceptional to employ different insurance brokers or organisations to cater to each individual requirement. Maintain precautions if assets are insured in a divided way, because this arrangement can make it tougher to discover gaps in coverage and can expose the family to huge out-of-pocket expenses if a claim comes up.

• Do the family have sufficient personal excess liability insurance?

Insufficient liability coverage is one of the most crucial errors HNWI’s can make. They must have sufficient coverage which measures up to their total net worth. If the family isn’t purchasing insurance from specialist providers which manage high net worth customers, they will not be able to offer enhanced custom-made solutions which aren’t accessible in the marketplace.

• Are they presently a part of charities and/or foundations?

High net worth individuals and families often donate an essential amount of their time to charitable organisations. One might believe that the charity or foundation would have reasonable coverage, however not-for-profits generate function on a strict budget. If a lawsuit exhausted the company’s liability coverage, the plaintiff can come after individual board members too. If the board was sued for inadequate management practice, unfair termination, defamation, harassment, or slander, ensure that the family has enough stability and security to cater to the concern without losing both repute and finances.

• Do they hire private staff?

Sadly, it’s not unusual for an assistant, driver, cook or nanny to file a lawsuit against their employer. In the absence of an adequate infrastructure to handle domestic employees, the family can be at jeopardy. In seasons of economic changes, resentful or terminated staff can be coaxed to file a lawsuit for sexual harassment, unfair termination or discrimination. Ensure that your family’s existing policies are transparent and in sync with all functioning employees. Apart from acquiring adept insurance coverage, reliable staff management are a useful resource in shielding the family’s defences. Support the creation of formal job descriptions, annual reviews and apt documentation for disciplinary actions at all times.

Labuan as a Wealth Management Hub

People who are seeking for several Wealth Management products or solutions, Labuan is an ideal location to begin with. Regulated by the Labuan International Business and Financial Centre (IBFC), you can choose from a variety of wealth management vehicles like charitable trusts, private trust companies, purpose trusts, spendthrift/protective trusts, Labuan special trusts and Labuan Foundations. For affluents or business owners that are planning to structure their business for future succession of their family, Labuan special trust can help to protect the wealth from mismanagement of the leading generations.

The several vehicles can be systemised in accordance to the needs like to support in wealth transfer, dynastic planning and inheritance management. QX Trust team of consultants specialise in wealth management solutions, do contact us for a complimentary session at CONTACT US or consultant@qx-trust.com and we will advise you on adequate ways to manage your wealth efficiently.