WHITEPAPER: Operational Due Diligence in 2023 and Beyond

WHITEPAPER: Operational Due Diligence in 2023 and Beyond

Operational Due Diligence, widely known as ODD, is a cornerstone for due diligence processes. A high functioning ODD framework is built on three key organizational capabilities:

  • a multitude of data sources all coming to the investor in different formats, at varying frequencies, and via different channels,
  • a centralized platform to track diligence workflows, and a review and risk framework that powers the investor’s specific investment framework, and
  • an experienced and specialized ODD team combines both of these elements to create a defensible ODD framework.

In this whitepaper, we explore the maturity of the various ODD programs, the various data sources leveraged by ODD teams, and how ODD professionals are integrating their judgement and expertise with technology to create a risk-based ODD frameworks.

While risk-based ODD frameworks are gaining traction, the way they are being implemented are quite different across our client base. Some leverage flags, others leverage ratings and scores, while a third cohort combines both. The risk factors that they prioritize and the data sources that feed these risk frameworks are key differentiating factors for each ODD team in generating operational alpha for their portfolios.

Give our whitepaper a read, and please give us your feedback on how you have implemented your ODD program!

Related Blogs

Asset Managers Form ADV Data
10 Ways Asset Allocators Are Using Form ADV Dataset