Hedge fund operational due diligence since 2009.

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PHYSICAL SECURITY AT THE INVESTMENT MANAGER

Operational risk due diligence on private fund managers should factor in physical security especially in today’s expanding technological and remote working environment.

Here is a basic checklist:

  1. Does the manager have a physical office?
  2. Does the manager have a direct lease with their landlord, or is the lease short term?
  3. Does the manager sub-lease their office space to third parties?
  4. Is the office building secure from unauthorized entrants, and/or other risks such as fire and weather?
  5. Does the office building have a security desk and guards in the lobby?
  6. How is the office building locked (keycard, fingerprint, metal key)?
  7. Does the manager’s office suite have a receptionist monitoring the entrance of their office space?
  8. Does the manager keep their office suite entrance door closed and locked?
  9. How is the office suite locked (keycard, fingerprint, metal key)?
  10. Are hard copy documents kept in locked cabinets?
  11. Does the manager maintain hard copy documents visible in the office?
  12. Does the manager have names of their clients visible around the office?
  13. Does the manager keep their email open and hold confidential calls during an ODD review?
  14. What is their policy for staff working remotely?
  15. Do they have an information security policy to ensure that their home office space is secure from family members, roommates, household staff?
Hedge Fund and Private Equity Fund Operational Due Diligence

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