During the due diligence phase of an acquisition, the MOST important course of action for...

During due diligence, performing a risk assessment is critical to understanding the potential impact of integrating the new organization into the acquiring company. This includes evaluating inherited risks, compliance gaps, and technical vulnerabilities.

“As part of due diligence during mergers and acquisitions, it is crucial to assess risks associated with the target organization to ensure proper integration and continuity.”

— CISM Review Manual 15th Edition, Chapter 2: Risk Management, Section: Due Diligence

ISACA’s CISM practice database reinforces that identifying and quantifying risks early helps ensure appropriate controls are in place before the integration, making risk assessment the most critical activity.