Due diligence” can be defined as “the care that a reasonable person or organization exercises under specific circumstances to avoid harm to themselves or others.” People and organizations are usually expected or required to perform necessary and appropriate due diligence before undertaking expensive and/or critical efforts. Said another way, due diligence is a risk aversion, and/or risk mitigation strategy.
Organizations world wide have realized that a strong, transparent and accountable mechanism is a prerequisite to analyze the progress of any programmatic intervention. One of the most imperative process to assess the success of any programme is a strong regularized monitoring and evaluation process.
Due diligence is especially critical when dealing with businesses or governmental organizations in developing markets. In this environment it is essential that businesses become completely familiar with the operations of international clients, business partners, distributors, agents, consultants and individuals before conducting offshore transactions, establishing formal corporate partnerships or committing to international investments.