Due Care vs Due Diligence: What Is the Difference?

Key Takeaway

Due care involves ongoing efforts to maintain cybersecurity measures and protect systems, while due diligence focuses on investigating and assessing risks associated with third-party vendors and business decisions before entering agreements.

Key Terms

Due Care: The ongoing effort to maintain cybersecurity measures and protect data systems through proactive security practices.
Due Diligence: The comprehensive investigation process to assess cybersecurity risks associated with third-party vendors or business decisions.
Reasonable Care: The standard of behavior expected to protect information systems using prudent precautions under similar circumstances.
Vendor Risk Management (VRM): The systematic approach to identifying, assessing, and mitigating risks from third-party service providers.
Risk Assessment: The systematic evaluation of potential cybersecurity threats and
vulnerabilities facing an organization.

Introduction

Understanding the distinction between due care and due diligence is essential for effective cybersecurity risk management. While both concepts are critical for establishing robust security postures, they differ significantly in application and focus.

Key Insight: Organizations implementing both due care and due diligence frameworks reduce cybersecurity incidents by up to 65% compared to those focusing on only one approach.

Due care refers to habitual actions, policies, and procedures employed to maintain safety and avoid risks consistently. Due diligence involves taking necessary investigative steps to avoid harm in specific situations, particularly when evaluating third-party relationships.

What is Due Care in Cybersecurity?

Due Care Definition: Due care refers to the effort made by organizations to avoid harm through proactive cybersecurity measures. It represents the level of judgment, attention, and prudence that reasonable organizations exercise under particular circumstances to maintain security standards.

In cybersecurity contexts, due care encompasses ongoing efforts organizations make to keep data and systems secure. This includes implementing appropriate security measures, regularly updating software to patch vulnerabilities, and ensuring employee training in security best practices.

Essential Due Care Practices

Due care in cybersecurity requires continuous commitment to maintaining and improving security measures:

Core Due Care Activities:

• Network Monitoring and Protection: Implement advanced threat detection systems and real-time security monitoring to identify malicious activity promptly
• Employee Cybersecurity Training: Provide comprehensive awareness training covering phishing, password management, and secure internet practices
• Policy Implementation: Develop and maintain clear cybersecurity policies based on thorough risk assessments and industry standards
• Data Backup Management: Automate backup processes with secure on-site and off-site storage, including regular restoration testing
• Wi-Fi Network Security: Secure networks using strong encryption (WPA3), hidden SSIDs, and regular password changes
• Regulatory Compliance: Stay informed about cybersecurity regulations and standards relevant to your industry
• Incident Response Planning: Prepare comprehensive incident response plans with regular testing and updates

What is Due Diligence in Cybersecurity?

Due Diligence Definition: Due diligence is the comprehensive investigation process organizations undertake before entering agreements or making decisions. In cybersecurity, this involves researching and understanding risks associated with third-party vendors to ensure they meet security standards.

Due diligence in cybersecurity refers to steps taken to assess security postures and practices of external entities. This includes evaluating potential risks, verifying compliance with standards, and continuously monitoring vendor performance and security protocol adherence.

Key Due Diligence Components

Effective due diligence requires systematic evaluation of third-party cybersecurity risks:

1. Vendor Risk Management Policy Development Document decision-making processes for vendor selection, including cybersecurity practice verification, certification requirements, and ongoing monitoring procedures.
2. Third-Party Vendor Monitoring Conduct baseline security assessments, implement continuous monitoring systems, and perform independent audits or penetration testing as needed.
3. Annual Security Audits Examine IT systems, configurations, technologies, and compliance with regulations using qualified cybersecurity professionals to identify vulnerabilities.
4. Regulatory Compliance Updates Regularly update due diligence practices to comply with evolving laws like GDPR, HIPAA, CCPA, and industry-specific standards.

Key Differences Between Due Care and Due Diligence

Aspect	Due Care	Due Diligence
Focus	Internal security maintenance	External risk assessment
Timing	Ongoing, continuous efforts	Pre-decision investigation
Scope	Organizational security posture	Third-party vendor evaluation
Purpose	Prevent security incidents	Assess partnership risks
Activities	Training, monitoring, policy enforcement	Audits, assessments, vendor evaluation
Responsibility	Internal security teams	Risk management and procurement teams