Certified in Risk and Information Systems Control (CRISC) Practice Test

Due Diligence is a critical concept rooted in the systematic process of investigation and evaluation, primarily in the context of business transactions, risk management, and compliance. It involves ensuring that all relevant information is examined thoroughly before making decisions, particularly regarding investments, acquisitions, or other significant commitments.

While Due Diligence may touch upon aspects of governance and operational efficiency, its main focus is on the scrutiny of facts and conditions related to a specific undertaking. This includes assessing risks, legal implications, financial health, and the accuracy of claims made by involved parties. In this light, aligning Due Diligence specifically with governance structures or strategic planning can be misleading because those aspects pertain more to how organizations are managed and structured rather than the thorough investigative process inherent to Due Diligence.

Thus, the option indicating that Due Diligence is "not related to governance" accurately captures the essence of what Due Diligence entails, as its primary concern is the assessment and verification of relevant information rather than the overarching frameworks of governance.