Vendor due diligence (VDD) is a process of evaluating a company’s financial, legal, operational, and regulatory risks before entering into a business partnership. It’s a buyer-centric assessment that helps companies minimize risk, streamline the sales process, and maximize value.
As financial firms increasingly turn to third-party vendors to execute core business functions, they must contend with heightened exposure to the risks created by working with outside parties. Vendor due diligence (VDD) is the process of evaluating (upfront and throughout the life of your partnership) a vendor’s financial, legal, operational, and regulatory risks before entering into a business partnership.