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Family offices are at the forefront of managing high-net-worth individuals’ assets, expertly navigating the complexity of their investments, estate planning, and philanthropy. Theirs is a crucial role that involves handling and storing sensitive information. However, many family office continue to use traditional tools such as spreadsheets, exposing themselves to financial, reputational, data security breach and legal risks.
Spreadsheets are useful and flexible, but they fail to protect against unauthorized access, data breaches, and human errors. This makes them susceptible to security breaches, comprising a family office’s confidentiality and credibility. Furthermore, using spreadsheets to store information may not meet regulations for personal data protection, leading to potential legal repercussions.
Family Office Software implement the latest technology and best practices for family office data confidentiality. Industry-leading platforms such as Asset Vantage consist of the security following features:
1. Data Ownership: Full ownership of data remains with the client so they have control over their information at all times.
2. Advanced Security Protocol: State-of-the-art security measures, including:
- Encrypted databases and communication
- Multi-factor authentication
- VPN-only access options
3. Private and Secure Backups: Daily data back up onto a reputed and secure cloud service for retrieval in case of any issues with the primary data source.
Also Read: Why Dashboards Matter: Steering FO’s Success with Data Visualization
4. Customizable Access Control and Permissions: Family office-designated administrators with access control so only authorized personnel can view and alter various kinds of data.
5. Audit Trails and Compliance: Continuous audit trails which meet industry and legal standards.
6. Centralized vs. Decentralized Data Storage: A private cloud environment for each family office, as opposed to a multi-tenant database, so the data of each platform user remains distinct from the rest.
With the increasing complexity of family office portfolios, harnessing technology is the only way to ensure optimal financial management. Once the data security and privacy of such modern tools is assured as well, families can focus solely on growing their wealth.
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