The Difference Between Due Diligence and Due Care in Security Risk Management

Both due diligence and due care are crucial components of cybersecurity and IT service practices. Together, these practices play a vital role in safeguarding your business from cyber threats and ensuring compliance with industry standards and regulations. 

Understanding the distinction between these two concepts can help organizations create a comprehensive cybersecurity strategy with tailored risk management protocols. But, what is the difference between the two, and why is it important? 

Due Diligence

Due diligence and due care are both essential in security risk management, but they refer to different parts of the process. Due diligence involves proactive assessments to identify potential vulnerabilities before they escalate into significant risks. Each component of the due diligence process naturally leads to follow-up actions in due care, ensuring that identified vulnerabilities are addressed and managed effectively to mitigate potential risks.

This process typically involves a comprehensive evaluation of various factors, including:

Risk Assessment: 

A comprehensive risk assessment helps you identify weaknesses within your organization that could be exploited by cyber threats. By systematically evaluating various components, such as hardware, software, and user practices, this assessment gives you a clearer picture of the cybersecurity improvements that are needed.

By identifying these risks, you can evaluate which IT security solutions and strategy will best suit your business. This will also provide a foundation for the actions needed in future defense plans as cyber threats evolve.

Compliance Review: 

Keeping up with regulatory standards can significantly strengthen any business, but it is especially essential for those operating in highly regulated industries. For instance, meeting HIPAA regulatory standards is non-negotiable for healthcare businesses, as it ensures the protection of sensitive patient information. Failure to comply can lead to severe penalties and damage to reputation. 

As part of the due diligence process, conducting a thorough evaluation or audit of your company’s compliance standards is crucial. This not only helps identify potential gaps in adherence to regulations but also enables businesses to implement necessary changes proactively, thereby minimizing risk and enhancing operational integrity.

Security Audits: 

Security audits evaluate your current security controls and systems to ensure they are effectively performing their intended functions. It helps you gain valuable insights into network inefficiencies, potential hardware issues, and faulty employee security protocols.

The goal is to proactively identify and prevent security issues before they escalate and compromise sensitive data or disrupt operations. Additionally, it is crucial for ensuring that your security system is compliant with regulatory standards.

Vendor Risk Assessment: 

Whether you’re vetting new vendors for your supply chain or managing an ongoing partnership, prioritizing the security of your supply chain is crucial. If your business partners with a third-party business that fails to maintain its IT security efforts, you risk exposure to supply chain attacks, data breaches, and other threats that can harm your business and its reputation. A comprehensive vendor risk assessment involves identifying potential vendors’ security standards and evaluating the various security risks associated with doing business with them. 

When vetting possible vendors, check their customer reviews to assess their reputation, and look for verified certifications like SOC2 that signify their commitment to IT security. A vendor risk assessment involves a thorough analysis of the vendor's security practices, compliance with industry regulations, and overall reputation in the market. A reliable and trustworthy third-party vendor should be committed to implementing best-in-class defense measures, such as regular security audits, employee training, and incident response plans.

Due Care

Due care involves the initial application and ongoing maintenance of security measures and practices to protect your organization. After assessing your organization’s systems and identifying any existing or potential security risks, you can develop a tailored security risk management system to safeguard your business. It’s important to understand that due care and due diligence go hand in hand. Continuously adhering to due diligence protocols, such as regular evaluations, is essential for effectively exercising due care.

Implementation of Controls: 

As cybercriminals continually evolve their tactics and strategies, it is crucial to stay ahead of these potential threats. By implementing a robust control framework, such as EpiOn’s Measurably Better IT Framework, you can establish a comprehensive and clear process for deploying essential security measures. This approach involves a fluid process for examining your due diligence and then efficiently implementing due care policies, procedures, and technology updates.

Employee Training: 

Human error continues to be one of the most prevalent causes of data breaches, leading to significant risks for organizations and their stakeholders. This underscores the critical importance of training staff on security best practices, including web security protocols and the proper handling of sensitive data. 

Implementing comprehensive training programs is a vital step in exercising due care and safeguarding valuable information. Regular training sessions should be conducted to ensure that team members are well-informed and familiar with the latest security practices, emerging threats, and industry standards. By fostering a culture of awareness and vigilance, organizations can significantly reduce the likelihood of human error and enhance their overall security posture. 

Continuous Monitoring and Incident Response: 

Continuous monitoring allows your IT department or MSP to detect and respond to potential security threats in real time. Most MSPs, like EpiOn, create a well-defined incident response plan that caters to your systems and networks so they can efficiently isolate and address breaches immediately. A reliable incident response plan lays out a sequence of defense procedures based on your business’s data and asset priorities. It takes clear communication, consistent training, and a team of IT experts who are dedicated to safeguarding your business. This not only contains damages but also minimizes disruption​ to your business operations.

Ongoing Security Management: 

Cyber threats are constantly evolving, which means they’re constantly posing a new threat to your cybersecurity systems. 

One of the best ways to keep on top of this issue is by working with an MSP that continuously trains their team on procedures for preventing and responding to evolving cybersecurity risks. MSPs who are SOC 2 certified, like EpiOn, are required to consistently stay up to date with cutting-edge security management practices to retain their SOC 2 certification. This ensures that your business maintains up-to-date systems and is regularly updated to close off any security gaps.

Ensure your company has a strong and sustainable security risk management system in place by working with a managed service provider like EpiOn, which makes continuous due diligence and due care a top priority. By employing this dual approach alongside our advanced IT security solutions, you and your team can focus on what you do best with the peace of mind that your business is secure. Contact us today!