Explore the multifaceted security challenges faced by High-Net-Worth individuals (HNWIs), from physical threats to cyber risks.
Rohit Karnatak, VP at Pinkerton Corporate Risk Management India, delves into the complexities and advocates for a proactive risk governance framework to protect against evolving dangers.
Security concerns for the super-rich are a complex web of challenges, from armed burglaries to cyber threats.
Rohit Karnatak, Vice President at Pinkerton Corporate Risk Management India, a specialized security consultancy, sheds light on the unique issues faced by High-Net-Worth individuals (HNWIs).
“HNWIs wealth and prominence exposes them to specific security risks that extend beyond personal realms to include families and close associates,” Karnatak says.
He highlights the prevalence of blackmail, extortion, and cybersecurity issues as some of the key concerns. Pinkerton, known for its security expertise, serves high-net-worth clientele in various sectors. The company acts as a shield, protecting against both tangible and intangible threats woven into the lives of the super-rich.
Recent geopolitical situations have significantly changed the landscape of risk governance. These conflicts have implications for global economic trends, business continuity, and asset security. With the occurrence of such situations, there are sanctions, supply chain disruptions, and a risk of global market contagion.
“To address these consequences, a proactive and comprehensive risk governance framework is necessary to anticipate potential threats and develop effective strategies to mitigate them,” Karnatak says.
He adds that risk governance goes beyond managing negative outcomes. “It also involves turning risks into opportunities. I see risk governance as a strategic tool for informed decision-making, driving growth, and building a resilient organization. It is about creating a culture where everyone becomes a risk manager, contributing to the overall security and growth of the organization,” Karnatak says.
Furthermore, risk governance requires a robust internal control environment with clearly defined roles and responsibilities, regular audits, and effective communication channels. This fosters a culture of risk awareness and accountability across the organization.
Invisible perils: Fortress of wealth and jet-setting dilemmas
HNWIs face a unique set of risks associated with their physical security, personal safety, and travel patterns. These risks have been exacerbated in recent years due to geopolitical tensions, economic disparities, and the increasing use of digital technologies.
One of the prominent risks that HNWIs face is physical security threats. These individuals often become targets for various criminal activities such as armed burglaries and kidnappings due to their high-profile status and wealth.
For the jet-setting elite, travel is not just a luxury but a potential minefield of risks. Navigating high-risk areas exposes them to a spectrum of threats, from traditional theft and kidnapping to the modern spectre of cyber-terrorism. The intricacies of travel marked by a global pandemic and geopolitical instabilities have elevated these concerns to unprecedented levels.
“A risk governance framework can effectively mitigate these risks by incorporating personal protection measures, residential security measures, and secure travel logistics. For instance, advanced protective intelligence can be utilized to assess potential security threats and develop customized security and crisis response plans,” Karnatak says.
In addition to physical security and travel threats, HNWIs are also vulnerable to cyber risks. Cyber criminals are getting increasingly wily with their attack strategies. The increasing dependence on digital platforms and the rise of cybercrime have made personal and financial information susceptible to theft or unauthorized access.
Karnatak shares that there have been instances where affluent individuals fell victim to sophisticated cyberattacks, resulting in financial losses and reputational damage.
“A robust risk governance framework integrates cybersecurity measures and best practices to protect high net worth individuals from such threats. By conducting regular cybersecurity assessments, implementing strong authentication protocols, and providing ongoing cyber awareness training, we can help mitigate the risk of cyber breaches and safeguard sensitive information,” he says.
Furthermore, HNWIs face unique risks related to their reputation and privacy. With the advent of social media and instant communication platforms, reputational damage can occur rapidly and have far-reaching consequences.
Instances of affluent individuals falling prey to sophisticated cyberattacks, resulting in financial losses and reputational damage, have become distressingly common.
“There is a need to monitor online activities, identify potential threats to their reputation, and implement strategies to mitigate these risks. By developing crisis communication plans, conducting online reputation management, and engaging in proactive media monitoring, the reputation and privacy of HNWIs can be preserved,” Karnatak says.
Risk Governance: Charting a course for safety
A robust risk governance framework emerges as the guardian angel for HNWIs. It extends its protective wings across physical, personal, and travel security. Crafted in response to the evolving global landscape, this framework involves evaluating vulnerabilities in residences, transportation arrangements, and travel plans, providing HNWIs with trained and qualified personal agents.
“With the recent rise in global conflicts and geopolitical tensions, it has become crucial for us to ensure that our clients are well-prepared and protected from potential physical,” Karnatak says.
Additionally, successful risk governance requires strategic partnerships and collaboration with relevant external stakeholders.
“For example, leveraging our extensive network of global intelligence sources, we were able to provide timely and accurate information to our clients regarding changes in geopolitical landscapes, emerging risks, and potential security threats. This collaborative approach ensures that our clients receive the most up-to-date and actionable intelligence to make informed decisions about their personal security,” Karnatak says.
A risk governance framework is critical in protecting HNWIs from the myriad of threats they face in today’s volatile world. It provides a strategic approach to managing their unique risk profiles, ensuring their personal safety, and enabling them to go about their lives with peace of mind.
