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Glossary › Initial Due Diligence
What is Initial Due Diligence?
Initial due diligence assesses security controls, privacy practices, operational resilience, financial health, legal compliance, and reputational signals. It ensures a vendor is suitable before entering into contractual relationships. In TPRM, this is the foundation of risk-informed vendor selection.
FAQs
Why is initial due diligence required?
It prevents onboarding high-risk or non-compliant vendors.
Does it include security assessments?
Yes, along with financial and compliance reviews.
Is it mandatory in regulated industries?
Yes, regulators expect thorough pre-contract assessments.
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