ELI5: Explain Like I'm 5

Operational due diligence

Operational due diligence is when grown-ups need to check if a business is doing things the right way. It’s kind of like when you’re playing with your toys and you want to make sure they are working properly, so you check to make sure they are all there and not broken.

When grown-ups want to check if a business is doing things right, they look at things like how the business is being run, if they are following rules, if they are making money, and if they are doing everything safely. It’s important to do this because if a business is not doing things the right way, it could be harmful for people, and it could cause big problems for the people who own the business.

Just like how you want to make sure your toys are fun and safe to play with, grown-ups need to make sure businesses are doing things responsibly and safely for everyone.