Department for International Development Due Diligence Guide

Published: July 11, 2018 | By DFID | Library item

The Due Diligence Framework is a powerful risk management tool that encompasses activities undertaken to assist the Senior Responsible Owner (SRO) of the programme in obtaining assurance of a potential delivery partner’s capacity and capability to deliver DFID aid. In reviewing the partner’s capacity, systems, policies and processes, the SRO will gain a much better understanding of the strengths, weaknesses and risk in working with that partner, leading to a more informed and better-managed intervention. This assessment of delivery partner risk is in addition to the assurance given by the Multilateral Aid Review which focuses on effectiveness and value or money.

The Framework provides DFID with a consistent approach for conducting Due Diligence during partner assessments and selection using an agreed set of guiding principles and assessment activities. These should be applied in a proportionate fashion taking account of the nature of the partner, the value and assessed risk of the planning intervention.

To improve accessibility, the guidance is presented in a segmented format with the core framework document covering the high-level principles with supporting sections covering the key elements of the framework. In line with the Smart Rules, this approach is intended to help colleagues focus on the relevant issues at the relevant point in considering the assurance process. It recognises that one size does not fit all, empowering staff to decide on the level of detail required, which will be proportionate to the intervention and proposed partner.

This document:

  • defines the design principles of the Framework.
  • defines what Due Diligence, in the DFID context is,
  • outlines the respective responsibilities of the DRO, Risk and Control Unit and the business area,
  • identifies factor to be considered when determining a proportionate application of the framework, outlines processes to capture and share knowledge across DFID.