The following is my definition of Due Diligence and Due Care. As I am not a lawyer, I just interpret them from my point of view and avoid to relate them to the context of the laws.
The core concept of due diligence is about making informed decisions. A decision should be made based on sufficient information and justifications. If a decision-maker can’t do so, he or she doesn’t exercise due diligence. The decision-maker often implies the management.
- Security Due Diligence
- Financial Due Diligence
- Operational Due Diligence
- Legal Due Diligence
- Human Rights Due Diligence
The core concept of due care is about a reasonable person’s compliance and best efforts. A reasonable person should do his or her duty according to the organization’s policies, standards, and procedures; and with best efforts. Lack of due care is called negligence. The reasonable person role applies to everyone.