Due diligence

Due diligence refers to the process of gathering, and the review of, information on funders and partners before entering into a collaboration or an agreement or contract. The overall aim is to identify the risk factors that may place an organisation at academic, ethical, financial, legal, operational or reputational risk as well as identifying ‘security related’ issues associated with international collaborations. Undertaking due diligence can also mitigate potential problems as well as anticipating future developments which could jeopardise academic standards, national security and the viability of an award or collaboration and/or the quality of research.

Due diligence processes provide the relevant information required for an organisation to make clear judgements and assess potential risk to the organisation or its staff and students. Due diligence also informs compliance with legal and regulatory frameworks, the management and mitigation of risk and subsequent negotiation of agreements or contracts. The processes should be proportionate and timely and will depend on the nature of the proposed collaboration and the location and experience of the proposed funder and/or partner. In addition to the above, the evidencing of appropriate due diligence is a UKRI requirement (as stated in grant T&Cs) and is subject to funder audit checks.

Researchers, supported by their faculties, are responsible for undertaking due diligence and retaining due diligence records in the event of an audit. The following OU research policies can assist with the assessment of the suitability of the proposed research collaboration. In particular:

• Ethical Research Statement
• Research Code of Practice (Section 11)
• Terrorism and Extremism Related Research Policy

Due diligence should be applied in a proportionate manner to all internal and external research and Knowledge Exchange activity involving partners and/or funders, taking into consideration the nature of the collaboration, the value of the funding and the level of risk associated with the activity. Researchers engaged in international collaboration should also consider ‘Trusted Research’ principles to understand the potential threats and risks to OU research and how to protect OU research and staff from potential theft, misuse or exploitation.

A PowerApp for due diligence has been developed to collate due diligence information in a proportionate manner based on the assessment of perceived organisational risk (POR). The app also allows for wider due diligence information to be captured, for example financial, security related and ethical/reputational risk, as well as enabling information sharing via the Awards Management System (AMS) and an Organisation Dashboard.

Due diligence should be carried out on all prospective partners and/or funders before engaging in internal and/or external research and Knowledge Exchange activity.

1. Set up the Due Diligence App using the Due Diligence App Set-up Instructions (internal link only).

2. Check if a due diligence assessment has already been carried out on the organisation:
   • If the organisation is not listed in AMS follow Steps 3-5
   • If the organisation is already in AMS follow the guidance under the ‘Working with existing organisations’ in the OU Pre-Award Due Diligence Process (internal link only) document
3. Follow the in-app guidance to complete the due diligence assessment form (New partner or New funder request):
   • Complete the mandatory and optional (if information known) question fields
   • Complete the additional question fields if the organisation is perceived as medium- or high-risk
4. Seek faculty approval (where necessary) for high-risk collaborations (reputational, legal/compliance or research integrity risk) or refer to the OU’s Ethical Research Review Board (ERRB) if additional guidance is required.
5. Review the organisational due diligence information every three to five years (depending on risk level) or immediately if new information comes to light during the course of the collaboration.