Operational due diligence (ODD) is a critical process for institutional investors. Effective ODD ensures investments are protected from operational risks, regulatory breaches, and reputational damage. However, the process is fraught with challenges that can hinder performance and efficiency. Thomas Murray’s automated Operational Due Diligence solution, powered by the Orbit Risk platform, provides a transformative approach to addressing these challenges. Here are five key ODD challenges and how Thomas Murray helps overcome them. 

1. Resource Constraints 

Scarce quality ODD professionals often means that teams are stretched which can make it difficult to conduct thorough ODD across all investments. 

By automating and outsourcing the most time-consuming elements of ODD, Thomas Murray allows investment teams to achieve more with less. Our managed service handles the creation, distribution, and response management of operational due diligence questionnaires, freeing up internal resources for higher-value tasks. 

2. Information Overload 

Investment teams face an overwhelming amount of data from external fund managers, custodians, and other material third-party providers, often in different formats. Managing, analysing, and extracting actionable insights from this data is time-consuming and resource intensive. 

Orbit Risk allows clients to collect information in a consistant format before performing analysis in an efficient and automated manner. In addition to Questionnaires and Surveys, there is also a move away from point in time analysis through questionnaires to a more contemporary view and our Media Monitor tool, powered by AI, addresses this challenge by delivering curated news alerts relevant to the client’s investment portfolio. Our Financial Statement Analysis dashboards highlight red flags and trends, enabling teams to focus on critical insights without drowning in irrelevant information. 

3. Regulatory Compliance 

With ever evolving regulatory requirements, increasing pressure is being put on firms to monitor their investment managers and underlying third parties. Funds in Australia are wrestling with CPS230, which also potentially brings into scope the monitoring of some fourth parties.  Ensuring data is stored in a secure and consistent manner which can be interrogated quickly and effectively minimises the risk of potential regulatory penalties and reputational damage.

The Orbit Diligence tool is used by some of the world’s largest Funds, Banks and Financial Market Infrastructures to automate the collection, management and storage of data and supports this community in staying ahead of regulatory changes and requirements. 

4. Fragmented Data and Analysis 

A lack of centralisation often leads to inefficiencies, with data and insights spread across multiple platforms and formats. This fragmentation can make it difficult to gain a holistic view of an investment manager’s operational health. Even different departments can have a different view of the same organisation.

Clients need a centralised view of each investment manager's operational profile, red flags and emerging risks. By consolidating key strengths, weaknesses, and areas for improvement, our platform provides this in a single dashboard. 

5. Stakeholder Communication 

Clear, concise reporting is essential for communicating findings to stakeholders and also with external fund managers and other partners on tracking remedial steps. Without effective reporting tools, teams may struggle to convey complex insights in an accessible manner. 

Thomas Murray’s enhanced reporting capabilities empower teams to generate high-quality reports that facilitate transparent communication with stakeholders. The platform’s dashboards and analytics tools ensure that findings are well-documented and easy to interpret. 

How Thomas Murray’s Solution Fits into the Investment World 

Thomas Murray’s Orbit Diligence product streamlines workflows, improves risk management capabilities, and enhances efficiency through: 

  • Standardised Processes: Implement a consistent ODD framework across all investments. 
  • Contemporary Counterparty Monitoring: Moves analysis from point in time questionnaire based analysis to more contemporary perspectives on emerging risks through our Media Monitoring Solution and Cyber Risk Assessment Platform. 
  • Move along the Value chain: Automate repetitive tasks and outsource labour-intensive functions to a trusted partner, freeing up valuable internal resources.
  • Expert Analysis: Access industry expertise through Thomas Murray’s partnership with a leading operational due diligence consultancy. 
  • Enhanced Reporting: Deliver actionable insights and clear communications to key stakeholders. 

The Bottom Line 

Thomas Murray’s Orbit Risk ODD solution is more than just a tool, our Managed Services make us a strategic partner in addressing the challenges of effective Monitoring. By leveraging advanced technology, expert insights, and tailored solutions, our platform empowers investment teams to improve efficiency, enhance risk management, and demonstrate credibility to stakeholders. 

In an era where operational due diligence is both critical and complex, Thomas Murray provides the tools and expertise needed to navigate the process with confidence.

Orbit Diligence

Orbit Diligence

Automate your DDQ and RFI processes for a wide range of use cases, accessing a library of off-the-shelf questionnaires and risk frameworks.

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