due-diligence

Vocabulary Word

Definition

'Due diligence' is the careful research or examination you perform before a major decision or action - like a detective solving a case. It helps to prevent risks and make sure everything is alright.

Examples in Different Contexts

For impact investing, 'due diligence' is about assessing both financial returns and social impact. An impact investor might explain, 'Our due diligence includes evaluating the sustainable impact of our investments.'

Practice Scenarios

Public-Policy

Scenario:

The benefit of implementing this new policy is not clearly explained. We need to assess potential impacts before going forward.

Response:

I concur, effective due diligence will help us predict the policy's impact and identify any potential negative consequences.

Tech

Scenario:

The new software tool has promising features, but we need to examine its reliability and security before full adoption.

Response:

Sounds logical, let’s conduct some due diligence to assess the software's potential security pitfalls and glitches.