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.