Family offices run on trust. Small teams. Long service. Close proximity to wealth and private lives. That trust is essential — but when it isn’t supported by structure, it becomes the very place serious risks take hold.
In many of the most damaging cases I’ve worked on, no one forced their way in.
The individual already had access.
They were familiar with the routines, systems, and people.
That’s what makes insider risk different — and far more uncomfortable.
⚠️ Where Family Offices Often Get Caught Out
🔑 Uneven scrutiny
Senior hires are assessed properly.
Other roles are filled through recommendation and familiarity — even when those individuals end up with:
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Access to homes
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Travel movements
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Financial information
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Family members
Access grows quietly. Oversight doesn’t.
📄 Paperwork mistaken for protection
A “clear” background check is often viewed as a form of reassurance.
In reality, many checks are:
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Raw database pulls
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Long, technical, and uninterpreted
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Filed away and never revisited
They look thorough but answer the wrong question:
Does anything here actually concern us?
Risk doesn’t always appear as a conviction.
It appears as patterns.
🔄 The Part Most People Miss: Risk Changes
Someone who was considered low risk two years ago may no longer be today.
Common pressure points include:
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💷 Financial strain
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💔 Divorce or family breakdown
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⚖️ Legal issues
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🍷 Addiction
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😠 Resentment or perceived injustice
In family offices, roles expand over time.
Access increases.
Scrutiny fades.
That’s where problems grow.
🛡️ What “Proportionate” Ongoing Checks Actually Look Like
This isn’t surveillance. It’s sensible governance.
✔️ Role-based oversight
The greater the access, the greater the review.
✔️ Periodic re-vetting
Triggered by promotions, role changes, or every few years for sensitive positions.
✔️ Clear declarations
Outside interests, financial pressure points, and close personal relationships.
✔️ Structured exits
Access reviewed. Knowledge retained is considered—residual risk addressed.
Simple. Lawful. Defensible.
👀 Behavioural Warning Signs Trustees Should Care About
Most insider harm is preceded by signals that are visible but often dismissed.
Watch for patterns, not single incidents:
🚩 Growing resentment, entitlement, or grievance
🚩 Increased secrecy or resistance to oversight
🚩 Boundary erosion — favours, rule-bending, “off the books” decisions
🚩 Financial stress paired with lifestyle inconsistency
🚩 Fixation on status, recognition, or perceived slights
🚩 Unusual interest in information outside one’s role
None of these means someone is a threat.
But together, they deserve attention.
📋 Trustee Checklist for Board Discussion
Use this to prompt the right conversations:
🔑 Access & Oversight
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Do we clearly know who has access to what?
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Has access expanded without a formal review?
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Are high-access roles reviewed more closely?
📄 Vetting
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Are checks consistent across roles?
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Do we re-vet when roles or circumstances change?
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Are reports interpreted with judgment — not just filed?
⚖️ Conflicts & Pressure
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Are declarations up to date and safe to raise?
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Do we understand staff pressure points?
👀 Behaviour
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Are managers trained to spot behavioural change?
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Is there a clear, quiet route to raise concerns?
🚪 Exit & Aftercare
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Do we review access and residual risk on departure?
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Are difficult exits handled thoughtfully?
If several answers are unclear, the issue isn’t a lack of trust.
It’s visibility.
🧩 A Short Case Example: Behavioural Drift in Real Life
A senior administrator had been with a family office for over ten years.
Trusted. Discreet. Knew everything.
Gradually:
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Frustration about recognition grew
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Personal pressures mounted
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His role expanded informally
Oversight faded. Processes were bypassed “to help”.
Information was shared more loosely.
No single moment raised an alarm.
Each step seemed explainable.
The issue surfaced only when sensitive information appeared externally, tied to a dispute where he felt wronged and entitled.
By then, the damage was done — reputationally and financially.
There was no villain at the start.
Just pressure, drift, and unsupported trust.
🎯 The Trustee Question That Matters
This isn’t about distrusting people.
It’s about understanding behaviour under pressure — and recognising that loyalty, while valuable, isn’t a control measure.
The real question isn’t who do we trust?
It’s when we notice when something starts to change — early enough to act calmly and protect everyone involved?
If you’re a trustee or senior family office professional and want to assess your exposure to insider risk, we offer a confidential and proportionate review focused on access, behaviour, and governance.
