Definition
Due Diligence is a structured process for investigating and assessing an organisation, project, transaction or venture to identify material facts, obligations and Risks before a Decision.
Human Explanation
It means checking the relevant facts before signing a Contract, investing or entering a significant relationship.
Why it Matters
A disciplined review reduces the Risk of deciding on incomplete, inaccurate or misunderstood information.
Conceptual Boundary
Due Diligence does not eliminate Risk or guarantee that every issue will be discovered. Its scope must fit the Decision and context.
Practical Perspective
Define the Decision, scope, evidence standard, owners and unresolved questions before beginning the review.