One of the most challenging aspects of managing financial wealth together as a family is making shared decisions. The family enterprise structure and system, which often includes the family office, family foundation, operating businesses, trusts, trust protectors, family council, close advisors, and other operating partners, can be fertile ground for confusion and duplication if not managed efficiently and with transparency. In this episode of the Wealth of Wisdom podcast series, co-editor Keith Whitaker interviews Kathryn McCarthy on the “RACI” (pronounced RAY-SEE) governance framework. RACI distinguishes among people who are Responsible, those who are Accountable, those who should be Consulted, and those who need to be Informed. They discuss how a family enterprise can keep track of these different categories for different stakeholders and make better decisions.
Wealth of Wisdom