Due Care And Due Diligence

Due Care And Due Diligence 

Due Diligence 
Due diligence is conducting requisite actions to determine necessary safeguards required and making prudent business decisions based on the data gathered.  Taking due diligence could include items such as conducting a Risk Assessment, conducting pre-employment background checks and even reading thorough Service Level Agreements with contractors.  Generalizing, Due Diligence means identifying the necessary actions to take.

Due Care
Due Care is the ongoing process of conducting prudent practices as required to maintain the system in compliance with the processes identified and deemed necessary by due diligence.  Examples of Due Care would be upholding the terms of your Service Level Agreement, conducting daily backups, and checking logs to ensure no malicious activity is present.  Generalizing, Due Care means taking the necessary actions discovered from doing Due diligence.

How do These Terms Apply to you on a Day to Day Basis

1. Due Diligence – Before you get your license to drive a car, you are required to study to learn the rules of the road.  A failure to practice this due diligence could result in you failing to pass your test.  If you do pass, and do not maintain a regular knowledge of automotive laws, you may unknowingly break the law and then be found liable regardless of your knowledge of the law.

1. Due Care – To keep your car running safely, you take it in for maintenance every 5-10 thousand miles.  If you do not maintain your car, and it is found that a part which should have been replaced or maintained during regular maintenance caused an accident, you will be found liable because you did not practice Due Care.