A significant number of Asia’s first-generation entrepreneurs have yet to formalize succession plans, engage the next generation in financial decision-making, or establish systems to manage cross-border wealth, a new report finds.

These gaps can lead to concentration, preservation, and inheritance risks, which can pose long-term strategic threats to their fortunes, according to HSBC Private Bank’s latest report, Wealth in Asia: The Next Challenge.

Concentration risk: Many families’ portfolios reflect the sectors and geographies that generated their wealth, with entrepreneurs often keen to reinvest in their own sectors and markets. However, a lack of diversification can become a significant liability.

Preservation risk: In many cases, a single founder remains the primary decision-maker, with little delegation or long-term structure. That can work when portfolios are modest and domestic, but it becomes far riskier with scale. Without the right structures, a modest shock can cause a major disruption.

Inheritance risk: Many heirs remain outside the decision-making circle, and are unprepared to manage the family’s wealth or legacy. HSBC’s Global Entrepreneurial Wealth Report shows that many business owners in Asia have yet to formalize succession plans, with half worried at what would happen to their business and wealth if they were suddenly not around.

Lok Yim, HSBC’s regional head of global private banking for Asia-Pacific, comments: “We’re seeing extraordinary growth in private capital across Asia, but much of it is still closely tied to single sectors, currencies or markets. That level of conviction can deliver remarkable returns, but it also means these portfolios are more exposed when the environment changes. The challenge now is helping families scale from success stories into structures that can absorb complexity and risk.”

“Inheritance risk isn’t a legal problem – it’s a leadership problem. Bringing in the next generation early isn’t just about continuity. It’s about credibility. They need time to learn how to lead before they’re expected to,” he adds.

According to the report, Asia’s wealth is more concentrated, more mobile, and more entrepreneurial than anywhere else in the world. But maintaining that wealth will require long-term thinking, thoughtful planning, and timely action before growing complexity undermines the sustainability of Asia’s spectacular successes.