Due Diligence & Due Care
Due Diligence
  • Definition: The ongoing effort to systematically identify, evaluate, and mitigate risks while ensuring compliance with legal, regulatory, and ethical standards.
  • Focus: Proactive and preventative measures.
Key Activities examples:
  • Establishing and maintaining security policies and procedures.
  • Conducting regular risk assessments.
  • Ensuring vendor compliance and monitoring supply chain Risk Training employees on security and compliance requirements.
  • Performing audits and reviews to identify vulnerabilities and inefficiencies.
Due diligence demonstrates that the organization has taken "proactive steps" to protect its assets and meet obligations. It’s about creating a strong security posture before issues arise.
Due Care
  • Definition: Taking the right actions in response to specific situations to protect the organization and its stakeholders.
  • Focus: "Reactive measures and responses".
Key Activities Examples:
  • Applying security patches promptly when vulnerabilities are discovered. Responding to incidents with appropriate measures.
  • Following the organization’s policies and procedures during a crisis. Making decisions that reflect responsibility and caution to avoid negligence.
Due care emphasizes responsible actions taken during or after a situation to minimize harm or risk.
Relationship Between Due Diligence and Due Care
Summary
  • Due diligence is Proactive and preventative measures establishing and maintaining a foundation of good practices, policies, and controls.
  • Due care is Reactive measures and responses applying those practices responsibly in day-to-day operations and specific incidents.
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Fouad Ahmed
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Due Diligence & Due Care
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