Vendor management due diligence is the process of evaluating third-party vendors to ensure they meet security, compliance, and operational standards. It helps organizations reduce risk by reviewing vendor credentials, policies, certifications, financial stability, and data protection practices. This is especially important for industries like banking, fintech, and healthcare where third-party risk can lead to regulatory penalties or security breaches. A strong due diligence process includes ongoing monitoring, documentation, and performance tracking. By implementing vendor management due diligence, businesses can make better vendor decisions, strengthen compliance, and protect sensitive data while maintaining reliable partnerships.