In the current environment, marked by economic instability, geopolitical tensions, new regulatory requirements, and technological challenges, family businesses need more than good management to thrive. They need structure, a long-term vision, and resilience.
The study "Governance, Risk, and Compliance: A New Lens on Best Practices" by McKinsey & Company presents a new integrated GRC model that can, and should, be adapted to the reality of Brazilian family businesses.
Why talk about GRC in family businesses?
Risk management, corporate governance, and compliance mechanisms are not just requirements for large corporations. They are strategic tools for business families who wish to:
- Protect their legacy from legal and financial errors;
- Increase their attractiveness to partners, associates, or investors;
- Prepare the company for a professional and transparent succession process;
- Increase competitiveness against more agile and well-capitalized competitors.
In the absence of formal structures, the company becomes hostage to emotional decisions, family conflicts, and a lack of clarity regarding the roles of each member. In this sense, GRC is both a shield and a lever for growth.
The three dimensions of GRC that family businesses must observe
Governance: From Intuition to Structure
According to McKinsey, companies with mature governance are faster and more reliable in making decisions. In the family context, this starts with one question: who decides what?
Recommended practices:
- Creating a Family Council with clear rules for participation and succession.
- Implementing Advisory Boards or Boards of Directors with independent members.
- Defining policies on dividends, hiring family members, and executive compensation.
A structured family business can avoid conflicts, align expectations, and ensure continuity even during the most delicate transitions.
Risk: Identification is not enough—it must be acted upon.
The McKinsey study shows that resilient companies build models that not only monitor risks but also integrate them into the decision-making process.
Adaptation to the Brazilian context:
- Map credit, reputation, succession, and foreign exchange exposure risks.
- Evaluate suppliers and supply chains using security and ESG criteria.
- Have clear protocols for managing crises, fraud, corporate disputes, and litigation.
Business families that treat risk as a strategy—not bureaucracy—avoid losses that compromise assets and continuity.
Compliance: Ethics and Compliance as a Differentiator
The study highlights that compliance maturity means not only avoiding penalties, but also building trust. In Brazil, where the regulatory environment changes frequently and pressure for transparency increases, compliance is essential.
How to apply it in practice:
- Create a Family and Business Code of Ethics.
- Train family members and leaders to deal with conflicts of interest and legal risk situations.
- Monitor tax, corporate, and regulatory obligations with the support of experts.
The Strategic Role of the Family Office in Family GRC
A professionalized Family Office can be the integrating agent of GRC best practices:
Governance: facilitating communication between generations, organizing councils, and helping to document rules and policies.
Risk: structuring estate and succession planning with a focus on legal protection and tax efficiency.
Compliance: ensuring the company operates legally, ethically, and in line with the family's values.
At Nob Hill Family Office, we structure GRC in an integrated manner, connecting the business, assets, and family into a single strategy.
Conclusion: Professionalize to Grow Safely
GRC is not a luxury for family businesses—it's a necessity. Especially in a highly complex environment, where poorly structured decisions can destroy decades of wealth building.
What the McKinsey study teaches us is simple: companies that thrive are those that prepare. And this preparation starts at home—with structure, clear rules, and a long-term vision.
If your family business still operates under an "intuitive" model, now is the right time to initiate a strategic shift.
Would you like to discuss how to structure your family business's GRC? The Nob Hill Family Office team is ready to assist you in your transition to a more resilient, strategic, and sustainable model.
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