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Sales Due Diligence for Security
Sales due diligence for Security
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FAQs online signature
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What is the relationship between due care and due diligence?
Due diligence means that the company properly investigated all of its possible weaknesses and vulnerabilities. Due Care refers to the effort made by an ordinarily prudent or reasonable party to avoid harm to another, taking the circumstances into account.
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What is due diligence in security?
Cybersecurity due diligence is the process of anticipating, identifying, and addressing cyber risks across a company's network ecosystem. The aim of cybersecurity due diligence is to address the threats to network security that a company (and increasingly, its external stakeholders such as suppliers and partners) face.
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What is due diligence in security?
Cybersecurity due diligence involves identifying, anticipating, and addressing cyber risks across an organization's network ecosystem. Cybersecurity due diligence aims to address the threats to network security that an organization(and increasingly, its external stakeholders such as partners and suppliers) face.
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What is the standard of due care and due diligence?
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.
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What 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.
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What is due diligence vs due care in security?
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.
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What is due diligence in securities?
Due diligence is conducted for a number of reasons, including to: Confirm that the information disclosed or incorporated by reference in offering documents does not contain an untrue statement of a material fact or omit to state a material fact.
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What are the 3 examples of due diligence?
Other examples of hard due diligence activities include: Reviewing and auditing financial statements. Scrutinizing projections for future performance. Analyzing the consumer market.
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let's break out the due diligence process into two into two pieces first I think there's going to be an assessment of the basic security of the network of the company that you're looking to acquire or do and deal with are their systems secure do they have the appropriate technological protections in place do they have do the opposite you know system for making sure they have all current patches etc do they have policies you know state-of-the-art policies and procedures do they track nist are the ISO certified what kind of training you know do their employees and consultants do are they relying on cloud are they relying on third-party connections you know how is their physical security with respect to their vendors how do they assess what they're you know the security of their vendors and the risk that those vendors pose in terms of the interconnection to their networks what is what's the relationship with the with the regulator's have they had problems with regulators have they had prior breaches that how do they how they dealt with them are there privacy policies up-to-date so there are kind of a myriad of questions and inquiry and lines of inquiry that you should go through to assess the cybersecurity preparedness of the target so that's bucket one and that's what it deals with I think avoiding bad stuff that sort of too broadly put liabilities penalties reputational harm etc the second bucket is when you're doing a business where there is in particular data and this is really deals with personal data customer data that you need you know you're planning you want to continue using and that you may want to integrate with your own data or with other business units that the applier has and here you're looking at it somewhat differently which is in you know do they have the appropriate consents from the clients to be able to use this data one certainly for how they using it now but are the ability to use it post acquisition and particularly in the manner that you are painting as part of a larger business unit there may be privacy policies over over different periods of time so you may have different groups of people who have consent under different consent rights so you know you have to be mindful of kind of the different tearing the evolution of how the data was collected and how it's being used are they in compliance so in regulatory compliance with their with how they use this tore this data and will they be after the acquisition is done will they are you planning to transport the data outside the jurisdictions of which they currently operate and if so can you do that do you have the consent to do that and you have the regulatory structure to do that so you know that's and that is I think more of a looking forward aspect of the due diligence and that's not so much to avoid liability immediately but to ensure that what you are buying is going to deliver the value that you're expecting
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