Strengthen your back office, lower your risk
A strong investor with a weak back-office will eventually embarrass its LPs or, even worse, impair their capital accounts. With this in mind, LPs are increasingly conducting on-site due diligence of their managers’ back offices to ensure that an infrastructure of institutional quality is going to support the investment process.
In this video segment, experts from StepStone Group, The Praedium Group, and RSM discuss how an institutional-quality back-office demonstrates a broad commitment to risk management.
According to RSM’s, Nate Ruey, operational due diligence can focus on governance, IT, the confidentiality of data, cybersecurity, cash controls, and fraud risk, among others. Investors are not only worried about losing money but also, “If something went wrong in the back office, what would be the impact from a perception and reputation standpoint?”
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