11 Oct 2023

SBAI and CAIA Launch their "Professionalism in Practice” Joint Series

Exploring the key success factors that investment leaders should consider when building successful investment programmes – this is the first in a series of joint publications by the Standards Board for Alternative Investments (SBAI) and the Chartered Alternative Investment Analyst (CAIA) Association.

No investment is without operational risk. Chief Investment Officers and Investment Committees face the difficult challenge of striking the right balance between allowing investment teams to pursue attractive opportunities and not losing sight of operational risk – which in the most serious of cases can result in total loss.

This article, the first in the “Professionalism in Practice” joint series by the SBAI and CAIA, explores the professionalisation of Operational Due Diligence (ODD) and the key challenges that have arisen in the post-financial crisis “Goldilocks” era, including: the “fear of missing out” (FOMO), “operational washing”, resourcing constraints, and power imbalances in organisations. The article concludes by looking at the potential for ODD to deliver “Operational Alpha”, and the key considerations for investment leaders as they build their investment programmes.

The SBAI and CAIA, as part of their Global Partnership, are united in a mission to promote professionalism and standards across the alternative investment industry, including the development and maintenance of positive culture and high levels of probity.

We thank the CAIA Association for their collaboration and greatly look forward to continued partnership.


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