Why are we still talking about data paralysis from due diligence questionnaires?

Blog post Scott Decker 2023-01-12

Two things I hear all the time:

How can I automate low value DDQ processes and free up my team’s time to focus on higher value activities? And more importantly, how can I quickly glean actionable insights from DDQ responses to best inform my investment decisions?

If you haven’t solved for the former yet, then your team is manually managing some, if not all, of your due diligence processes - from sending out questionnaires, to organizing disparate responses, to analysis and final recommendation. That’s not good enough anymore. Why? Because it’s error prone, laborious, and inefficient. Automating collection, review and scoring processes can give your team back more than 50% of their time. Time that can be used for higher value initiatives. If this sounds familiar, fix this first. Believe me, you will never look back.

And what about actionable insights? Priceless, right? Unlocking data from questionnaire responses could be the key to differentiated results. The data you are collecting has meaning. After all, you are collecting it for a reason, regulatory or otherwise. While not all data should be treated equally, you should have a solid understanding of it. But this too can be an overwhelming low value task that often gets reprioritized, or left to junior staffers who oftentimes don’t have the benefit of historical experience to distill what requires your attention and follow up, from that which does not.

Consider the impact a digitized Operational Risk Assessment could make in your decision making process, available instantly, with a click of a button. Our Risk Assessment tool provides the analysis you need to make the most informed decisions. Included is a summary assessment, key findings and considerations, as well as detailed reporting around potential issues, recommended actions as well as resolved items. Insightful commentary on core risk factors such as governance and organization and fund structure, business continuity, and risk control provide additional detail to inform decisions. Valuable data at your fingertips instantly, imagine that.

Bottom line, data automation and analytics are key to maximizing your team’s time and streamlining your due diligence processes. If you’re interested in learning more I’d love to connect, share examples, and provide additional information or case studies. Let’s talk.

- Scott

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