What is Due Diligence?

Due diligence allows you to track the degree of use of computing and network resources, as well as storage systems. Learn more about due diligence for computing in the article below.

Due Diligence and Its Meaning in Simple Words

It is very important to cultivate a culture of respect for information. Unfortunately, the modern fashion to post anything and everything on social networks does not contribute to such education. If a person uploads a scan of his payment card online, it is difficult to expect that he will be more careful with the information of the organization. And this sin is not only ordinary workers but also the top management of companies. It often happens that in their interviews and speeches at various events, leaders say “a little more” than they should.

Most often, due diligence of companies is carried out at the request of business buyers. Salespeople tend to exaggerate the financial health of their business. The task of due diligence is to determine whether the declared characteristics of the business being sold correspond to reality. Identified deviations can help the buyer bring down the price when trading and thereby offset the cost of the verification itself since this procedure is expensive.

As soon as it comes to conducting due diligence, a lot of disputes arise between the buyer and seller of a business. The investor is afraid to buy a pig in a poke and wants to do preliminary due diligence. The seller does not want to let a person inside the enterprise who has not paid a penny. In addition, under the guise of buyers, raiders can come.

Having access to the internal information of the enterprise, it is much easier to capture the due diligence. One of the compromises is signing a preliminary contract and making a deposit. But here, too, there are nuances. Standard conditions of the deposit agreement: if the seller refuses the transaction, he returns the deposit in double size, if the buyer – the deposit remains with the seller.

A Fundamental Basis of the Correct Due Diligence

The fundamental basis of the correct due diligence is in the next principles:

  • Confidentiality. Assumes the principle of least privilege. Prevent unauthorized access to confidential information to prevent it from reaching people who do not have the authority to do so.
  • Integrity. Protection against incorrect deletion or modification. One way to ensure integrity is to use a digital signature for authentication and secure transactions, which is widely used by government agencies and organizations working in the medical field.
  • Availability. Main element. Controls, computer systems, and software must work properly to ensure that services and information systems are available when needed. For example, if the financial database is disabled, the accounting department will not be able to send or pay invoices on time, which can lead to the disruption of critical business processes.

Customer content of the due diligence includes software (including machine images), data, text, audio, video, and image files that a customer or any end-user moves into our system for processing, storage, or hosting through services under a customer account, and also any results of calculations that the client or any end-user receives as a result of using services. There are many different definitions of project management, but the most appropriate, in our opinion, is the definition proposed by the project management methodology.