Background:  A leading Private Equity firm is interested in going to the Street to raise $10 billion in capital for a new fund.  In an effort to reassure potential investors that the firm is serious about its fiduciary responsibility and meet the benchmarks set by large institutional investors it wishes to court, the firm recognizes that it needs to develop a fully functioning operational risk program that will meet the threshold put forward by its investors.

Engagement: Seeking to create a demonstrable program, the Firm reaches out to TABB C&CS, a longtime partner in the risk management space, to develop a strategy and implementation plan for developing this capability.  Working with TABB C&CS experts, the firm embarks on a two-pronged approach.  The firm upgrades its IT capabilities while reducing its proximity risk by relocating its IT capabilities offsite and investing in remote computing.  This frees up valuable Class A office space while at the same time mitigating the risks associated with being in a single location.  Similarly, the firm develops concrete operational plans that leverage the firm’s new capabilities, and clearly demonstrate the firm’s ability to ensure that it can continue to operate in the event of an unforeseen disruption.  

Results:  TABB C&CS professionals immediately begin working with the firm’s units to identify risks and pragmatic mitigation strategies, develop proper plans and roll out the program to potential investors.  The investment in new, low cost remote-access technology improves firm-wide efficiency by allowing fund managers and deal professionals to access critical data from any web-enabled computer, no matter their location.  Furthermore, the new operational risk management program goes a long way in establishing the firm’s bona fides with potential investors, which enables the firm to meet its financing goal ahead of schedule during a depressed market.