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Glossary › Third-Party Due Diligence
Third Party Due Diligence Definition
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.