Striking the Right Balance: Navigating ODD and IDD in Institutional Investments
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.
