Due diligence is the systematic investigation and risk assessment process applied to third parties, transactions or processes to make informed decisions.
In ISO standards, due diligence is an explicit requirement of ISO 37001 (anti-bribery) and ISO 37301 (compliance). It involves investigating and evaluating risk associated with partners, suppliers and transactions. Depth must be proportional to identified risk.
No. Due diligence is a preventive investigation to assess risks before a decision. Audit verifies subsequent compliance.
Mandatory in financial sector (AML), defense, energy, pharmaceutical and companies subject to FCPA or UK Bribery Act.
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