TY - JOUR T1 - The Three Forms of Governance JF - The Journal of Wealth Management SP - 7 LP - 18 DO - 10.3905/jwm.11.2.7 VL - 11 IS - 2 AU - Lisa P Gray Y1 - 2008/07/31 UR - https://pm-research.com/content/11/2/7.abstract N2 - This second in a series of articles focuses on elements of family business governance that are critical to family asset protection and proliferation, but which the author believes are largely overlooked by both families and their advisors. The article highlights the fact that the usual emphasis on the family business and family wealth management, in general, addresses only 25% of the family's wealth, leaving the other 75% vulnerable to less obvious risk factors. By approaching business governance from the perspective of the family governance component, essential aspects of business governance and its role in asset protection may be considered in an entirely new light, which offers revealing insights. Such an approach can empower families and their enterprises, providing them greater control over their assets and built-in protection mechanisms that can span generations. The article presents models of appropriate relationships between business governance and the other forms of governance discussed in the series, ending with a case study which illustrates the consequences of inappropriate governance exacerbated by both competing and passive family owners. Building on the premise that generational perspectives and family dynamics directly influence family office structure and wealth management decisions, this series of articles goes beyond the boundaries of the family office to explore the validity of the "three forms of governance" approach and how the three forms integrate in order to foster, transfer, and protect the wealth of the family.TOPIC: Wealth management ER -