Legal and Regulatory Issues

Due Diligence

• Is establishing a plan, policy, and process to protect the interests of an organization.
• Is knowing what should be done and planning for it; due care is doing the right action at the right time.

Due care

• Is practicing the individual activities that maintain the due diligence effort.

Gross Negligence

• Refers to the opposite of due care.
• If and when you’re not following due care and due diligence, then you would be held legally liable and may face negative impact to yourself.