Operational Due Diligence (ODD) is a critical risk management tool employed by allocators to assess the operational soundness of a fund. It covers areas like internal controls, compliance frameworks, IT systems, and reporting processes. Allocators often conduct ODD to verify that the fund's operations are secure, transparent, and aligned with best practices. This process may include reviewing the fund’s track record verification, evaluating the custodian's role, and verifying KYC/AML protocols. ODD provides confidence that the fund is operationally capable and compliant, and it mitigates potential operational risks during the fund evaluation process.