Understanding the 'Prudent Person' Principle for Small Shops

Been diving into compliance frameworks, specifically around suitability and best execution. The 'prudent person' principle keeps coming up, and I get the general idea for large institutions with dedicated risk teams. But for a smaller operation, maybe a prop firm or an RIA with limited staff, how do you practically demonstrate adherence? Is it just documented policies and procedures, or does it require more sophisticated modeling even at a smaller scale to prove you're acting prudently for clients? Any insights on how others approach this without a huge budget would be helpful.