What is a straightforward definition of "due diligence" in risk management?

In risk management, "due diligence" refers to the obligation to identify and manage potential hazards. This concept highlights the importance of proactively assessing risks within a given environment or situation to mitigate potential issues before they arise. Due diligence involves a thorough review of the risks associated with an operation, project, or decision-making process, ensuring that all potential hazards are identified and strategies are put in place to manage them effectively.

By fulfilling this obligation, leaders and organizations demonstrate a commitment to safety, compliance, and responsibility. It goes beyond simply acknowledging risks; it encompasses a systematic approach to managing those risks and implementing best practices to address them. This proactive stance is crucial for maintaining safety and operational integrity, making it an essential component of risk management.

In contrast, documenting all risks, creating a strategic risk plan, or ensuring team awareness are all important steps within the broader framework of risk management but do not fully encapsulate the comprehensive nature of due diligence.