THIRD-PARTY DUE DILIGENCE AS A TOOL FOR COMPLIANCE AND CORPORATE RISK MITIGATION

Abstract

This article analyzes third-party due diligence as an essential instrument of compliance and risk mitigation in the contemporary corporate environment. Unlike the traditional due diligence applied in mergers and acquisitions (M&A) operations, the modality focused on suppliers and contractual partners is of a continuous nature, being integrated into corporate routines as a preventive and strategic governance practice. The study aims to demonstrate how the systematic adoption of this procedure contributes to the reduction of legal, financial, and reputational risks, while also strengthening regulatory compliance and trust in business relationships. Methodologically, the research is based on doctrinal and normative review, as well as the analysis of institutional documents, particularly integrity guidelines applicable to the private sector. This approach makes it possible to delimit the concept of third-party due diligence, differentiate it from other modalities, and evaluate its correlation with compliance programs, especially within the framework of Brazilian legislation and international integrity standards. The article also highlights the practical benefits of third-party due diligence, such as greater security in negotiations, reinforcement of institutional reputation, and improvement in the quality of contractual decision-making. On the other hand, it addresses the main challenges arising from regulatory complexity, jurisdictional diversity, and the assessment of corporate culture. It is concluded that third-party due diligence is consolidated as an indispensable tool for business sustainability and for the preservation of integrity in contractual relations.