Due Care vs Due Diligence (2024)

FOUR OF THE BEST THINGS YOU CAN BUY TO PASS THE CISSP EXAM

Due Care vs Due Diligence (1)
Due Care vs Due Diligence (2)
Due Care vs Due Diligence (4)
Due Care vs Due Diligence (5)

One of the most common questions I get is:

"Luke, can you please explain the difference between due care and diligence with real-world examples?"

Yes, please see below.

Due Care & Diligence Concepts

  • Due care is about correcting something immediately. The first letter of the two words even help to remember this, DC = do correct.

  • Due diligence takes longer than just fixing something immediately, it is more the investigation as to why that something had to be corrected in the first place. It is about detecting the reason behind either an incident, event, or breach etc. etc. The first two letters help to remember this, DD, do detect.

  • Due care is a way to implement something right away in order to perform mitigation procedures.

  • Due diligence is making sure the right thing was done correctly, and if it is necessary to do it again or if further research is required.

  • Due care is doing the right thing, the prudent man rule.

  • Due diligence is making sure the steps to do the right thing are correct and within risk parameters, the experienced man rule.

  • In order to perform due care, the organization must first perform due diligence. Due diligence comes before due care and is a management process used to gather facts before making a decision.

  • The implementation of controls is due care, and verification of those controls being implemented is due diligence.

  • Due diligence is knowing and due care is doing.

  • Due care is an action which should most likely be taken, due diligence can be an action that may not be necessary but is the best thing to do for long-term goals.

  • The word "care" is a shorter word than "diligence", so due care is the short-term action, and due diligence is the long-term action.

  • Due care (bottom to top) starts from the bottom of security governance like security operations, and due diligence starts from the top (top to bottom) like senior management

Real-World Examples

  • Using a condom is due care, taking the steps to decide whether to use the condom is due diligence.

  • Issuing policies, standards, baselines, and procedures are part of due diligence. Applying these types of documents is due care.

  • Installing patches to mitigate the latest CVE is due care, understanding the reason for the CVE and making sure it has been fully understood is due diligence.

  • Performing an annual security audit is due diligence, but taking the corrective action from the results of an audit is due care.

  • Monitoring the network for malicious activity is due care, while implementing a policy from senior management for such activity is due diligence.

  • Due care is making sure you provide security training and practice sound security practices at your company. Examples of which include putting up posters that say you must lock your computer, or making sure employees know where to find documents for proper security procedures, or locking your drawers. Due diligence is setting up the proper framework, like ISO 27001 and having audits to make sure all those little steps you're making sure to do in due care, is done properly. Due diligence is the broader form of due care.

  • Due care is bringing back online a web server which went down in the middle of business hours. Due diligence is finding out why the web server went down and making sure controls are put into place to make sure it doesn't happen again in the same manner.

  • An outdated BYOD policy is a violation of due diligence, encrypting devices which belong to the employee holding company information is due care.

  • Conducting a penetration test is due diligence, and implementing the controls to mitigate the risks found as a result is due care.

  • Research of the network security infrastructure of your organization is due diligence, while installing and configuring firewalls, routers, servers, switches, and access points is due care.

  • When engaging with third-party vendors or suppliers, researching and understanding legal responsibilities, formulation of integrating two environments, conducting SLA negotiations, or ensuring a transition of power, is due diligence. Executing the engagement with the third-party vendor or supplier is due care.

  • Installing anti-virus software before deploying a device is due care, ensuring anti-virus software is up-to-date and monitoring in real-time is due diligence.

  • Configuring an IPSec VPN, access-control list, network address translation policies on a firewall is due care. A proper change management process to track and account for those changes is due diligence.

  • Putting up sandbags in preparation for a hurricane is due care. Tracking the weather and seeing the trajectory of a hurricane would be due diligence.

  • Visiting a doctor when you're sick and taking medication is due care. Maintaining a healthy eating habit and a proper exercise regimen is due diligence.

  • Studying your CISSP books, study resources, taking over 5,000 practice questions, reading NIST documents, watching videos, reading as much as you can about the CISSP Common Body of Knowledge, or becoming a member of this site, is practice proper due diligence. Taking your CISSP exam is due care, whether you pass it or not.

Cheers.

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Due Care vs Due Diligence (2024)

FAQs

Due Care vs Due Diligence? ›

In day-to-day life, due care refers to our habits, policies, and procedures that we use to keep us safe and out of trouble. Due diligence means that we take necessary precautions in a given situation. For example, we perform due diligence when investigating a potential problem that has been detected.

Which comes first due care or due diligence? ›

In order to perform due care, the organization must first perform due diligence. Due diligence comes before due care and is a management process used to gather facts before making a decision.

What is the difference between due care and due diligence in auditing? ›

Due care involves implementing and maintaining appropriate policies, procedures, standards, and controls that align with the organization's risk appetite and regulatory requirements. Due diligence refers to the ongoing process of monitoring and reviewing the effectiveness of the due care measures.

What is the difference between due diligence and reasonable care? ›

Due Care refers to the effort made by an ordinarily prudent or reasonable party to avoid harm to another, taking the circ*mstances into account. Due Diligence is a process of acquiring objective and reliable information, generally on a person or a company, prior to a specific event or decision.

What is the meaning of due care? ›

: the care that an ordinarily reasonable and prudent person would use under the same or similar circ*mstances. called also ordinary care, reasonable care.

What are the 3 P's of due diligence? ›

The 4 P's of due diligence are People, Performance, Philosophy, and Process. These key elements form the foundation of a thorough due diligence process, covering aspects related to the team involved, performance metrics, investment philosophy, and the overall process followed.

What are the 3 examples of due diligence? ›

The due diligence in business circ*mstances refers to organizations practicing prudence by carefully assessing associated costs and risks prior to completing transactions. Examples include purchasing new property or equipment, implementing new business information systems, or integrating with another firm.

Is due care and due diligence the same? ›

While due care focuses on preventing security incidents through ongoing maintenance and good practices, due diligence is about the investigative actions taken to ensure external parties do not introduce new risks into the organization.

What is an example of due care? ›

For example, if a driver is involved in a car accident, the court will consider whether the driver exercised due care while driving. If the driver was distracted or driving recklessly, they may be found to have breached their duty of due care and be held liable for any damages caused by the accident.

How to demonstrate due care and diligence? ›

What documentation is needed to show due diligence?
  1. Worker orientation, education, and training.
  2. Workplace inspections, including corrective actions taken.
  3. Incident reports, including corrective actions taken.
  4. Audit reports, including evidence of implementing recommendations for improvement.

What are the two main types of due diligence? ›

Types of due diligence
  • Vendor due diligence: Investigating the current or potential risk of new or existing vendors.
  • Third-party due diligence: Third-party due diligence assesses the risk level of potential third-party partners, including any vendors (or fourth parties) in your potential partner's ecosystem.
Mar 22, 2023

What is the concept of due care? ›

Due care, also referred to as ordinary care and reasonable care, is the standard of care where a reasonable person would exercise in the same situation or under similar circ*mstances. This standard of care is used in a tort action to determine whether a person was negligent.

What is the difference between due care and due diligence quizlet? ›

Due diligence involves investigating the risks, whereas due care involves carrying out the necessary steps to mitigate these risks.

What is due care in auditing? ›

10 The exercise of due professional care allows the auditor to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud, or whether any material weaknesses exist as of the date of management's assessment.

What is care and diligence? ›

What is meant by 'acting with care and diligence'? The duty to act with care and diligence requires public sector employees to pay serious attention to their work, treat work with care, and genuinely attempt to accomplish their tasks to a high standard.

What is a synonym for due care? ›

synonyms: ordinary care, reasonable care.

What comes after due diligence? ›

Once the due diligence process is complete, the buyer will typically provide a report outlining any issues or concerns that were identified. If the parties are able to reach an agreement, they will move forward with the transaction.

Are due diligence and due care the same? ›

While due care focuses on preventing security incidents through ongoing maintenance and good practices, due diligence is about the investigative actions taken to ensure external parties do not introduce new risks into the organization.

Does due diligence come before or after offer? ›

After you accept an offer or letter of intent (LOI) on your business, the buyer will begin due diligence. Due diligence is the process of gathering and analyzing information to help the parties determine whether or not to proceed with a business transaction.

What is the first stage of the due diligence process? ›

1. Prepare documents. During the due diligence process, potential bidders carefully scrutinize every aspect of the target company. To do this, they will methodically review all the documentation relating to each subject, from the business plan to real estate and cash flow - and everything in between.

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