A group of newly hired investment analysts at a large wealth management firm is undergoing training on the company's investment practices. Part of the training focuses on hedge fund investments and addresses how the firm evaluates the risk management processes and procedures of a hedge fund being considered for investment. The analysts learn that the firm performs comprehensive due diligence on the hedge fund's investment environment, as well as on its operational environment and business practices. Which of the following is correct about a hedge fund investor's due diligence on the operational environment of a hedge fund?