Operational Risk: A Critical Part of Non-Financial Due Diligence – In an increasingly complex and dynamic business world, the due diligence process has become a critical step in investment decisions, mergers, acquisitions, or strategic partnerships. One aspect that often receives significant attention but is sometimes overlooked is operational risk. In fact, operational risk is an integral part of non-financial due diligence that can determine the success or failure of a transaction and the long-term sustainability of a company.
Operational risk refers to the potential for losses resulting from failures in internal processes, systems, personnel, or external factors that affect a company’s operational activities. This risk is not directly related to financial aspects such as market fluctuations or credit defaults but is more about factors that hinder the smooth running of the company’s operations as a whole.
Examples of operational risks include IT system failures, supply chain disruptions, lack of skilled labor, procedural errors, or risks related to safety and security. In the context of due diligence, identifying and assessing operational risks is crucial so that investors or acquirers can understand potential threats that may arise in the future.
Non-financial due diligence aims to evaluate aspects beyond financial metrics that can influence a company’s value and sustainability. Operational risk is one of the main aspects that must be thoroughly examined because:
In practice, assessing operational risk involves several key aspects, including:
Once risks are identified, the next step is to develop effective mitigation strategies. Common approaches include:
A thorough assessment of operational risks requires specialized expertise and experience. This is where consultants like Siema Konsultan play a vital role. As a provider of due diligence, risk assessment, safety and security risk management, and business continuity solutions for companies operating in Indonesia, Siema Konsultan offers comprehensive and trusted services.
Founded and managed by Indonesian multibilingual professionals with extensive knowledge, Siema Konsultan is supported by international advisors and contributors. They combine global capabilities with local insights to deliver practical and relevant solutions tailored to client needs.
Their services include comprehensive operational risk assessments, mitigation strategy development, and risk management implementation. With a holistic and solution-oriented approach, Siema Konsultan helps companies ensure that operational risks do not hinder their business objectives.
Operational risk is an inseparable part of non-financial due diligence that must be understood and managed carefully by every company. Identifying and assessing these risks not only helps reduce potential losses but also builds investor confidence and long-term business resilience. Through effective mitigation strategies and support from experienced consultants like Siema Konsultan, companies can strengthen their operational position and ensure sustainable growth.
If you require consultation regarding due diligence, risk assessment, safety & security risk management, or business continuity solutions in Indonesia, feel free to contact Siema Konsultan at +62 813 1114 2228. Siema Konsultan combines international expertise with local knowledge to provide real solutions for your business.
Please visit:
Jakarta Office:
Sampoerna Strategic Square
South Tower Level 30,
Jl.Jend.Sudirman Kav.45
Jakarta Selatan – DKI Jakarta
Bali Office:
Jl. Cokroaminoto No.212,
Ubung, Denpasar Utara,
Bali – Indonesia
Contact Us:
Imam Budiharto
imam@siemakonsultan.com
Telpon: 021 2992 7844
Whatsapp: 0813 1114 2228