Enterprise Risk Assessment
We work with institutions and families who have key exposures outside their liquid investment portfolio. Sometimes the exposures are obvious and explicit, like a side business or revenue stream, and sometimes they are subtler, like a secondary or tertiary exposure to their underlying core focus. Harpswell works with institutions and families to identify and address enterprise risks to help prevent investment policies from inadvertently intensifying these exposures.
We have helped institutions develop a better understanding of a wide range of enterprise risks and how their investment policies might compound or reduce these risks. Enterprise considerations are often idiosyncratic and sometimes merit an explicit adjustment to investment policies. Examples of factors worthy of assessment can include: family business; key source of external revenue; concentration of foreign students; revenue elasticity relative to specific industry or economic condition; and partnerships. Quite often, the degree to which an institution (or family) owns or rents real estate is a factor that should be reflected in their investment policies.
Reach out to Harpswell’s team to see how we can help you better address your enterprise risks.