Which term is defined as the care that a prudent person might be expected to exercise in the examination and evaluation of risks?

• A. Evacuation
• B. Document
• C. Crisis
• D. Due diligence

Answer: (D)

Due diligence is the care a prudent person would exercise when examining and evaluating risks. It means gathering relevant information about threats, vulnerabilities, and potential impacts; assessing likelihood and consequences; weighing options for mitigation; and documenting why a chosen course of action is appropriate. In asset protection, applying due diligence means conducting thorough risk assessments before implementing controls, vendors, or procedures, and ensuring decisions align with applicable standards and laws. This contrasts with evacuation, which is a response action to move people from danger; crisis, which is the disruptive event itself; and a document, which is simply a record rather than the evaluative process. Therefore, due diligence best fits the definition in the question.