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Glossary › Third-Party Due Diligence
What is Third-Party Due Diligence ?
Due diligence examines security, privacy, compliance, financial stability, operational resilience, and reputational exposure. It occurs during onboarding and periodic reviews. In TPRM, due diligence is essential for understanding whether a vendor can safely provide services.
FAQs
Why is due diligence required?
To prevent onboarding high-risk or non-compliant vendors.
Does due diligence end after onboarding?
No, it continues throughout the relationship.
Is due diligence regulatory?
Yes, in many industries.
Responsible-AI TPRM Guide
Discover how risk teams apply AI responsibly to reduce third-party blind spots and stay audit-ready across global regulations.