CHAPTER 4
Additional Operational Due Diligence Considerations: An Expanded Analysis
This goal of this chapter is to introduce some additional operational due diligence techniques that are available when investors are seeking to increase the scope and depth of their operational due diligence reviews. In Chapter 3, we provide an overview of some of the basic considerations that may be in place with regard to beginning the operational due diligence process. As part of this introduction we covered some basic documents an investor might seek to collect during the operational due diligence process. We also introduced several basic topic-focused questions investors may seek to cover during the initial stages of the operational due diligence review. Building upon this foundation, we can now move toward discussing the process expansion into a more comprehensive framework.
CORE ISSUES VERSUS EXPANDED ANALYSIS
Earlier in this book, we consider the notions of a below-core, core, and expanded operational risk theoretical resource allocation paradigms. With a firm introduction to the core process already established, we can next proceed to an outline of the expanded review. The expanded review process seeks to build upon an investor's core process, such as by broadening the scope of the operational due diligence in a number of ways. An example of expanded risk analysis is compared to a core process in Exhibit 4.1.
EXHIBIT 4.1 Comparison of Core and Expanded Processes
| Risk Category | Core |
