Due Diligence

What is “Due Diligence” in Research?

In this context due diligence operates as a catch-all term for any regulatory, reputational, or moral concerns with a collaboration or collaborator which are not directly captured by other processes or policies. Due diligence concerns can often supplement or complement the checks conducted in the course of ensuring compliance with Export Controls, the NSI Act, the Nagoya Protocol, and the Human Tissue Act, as well as providing reassurance in their own right.

In conducting a due diligence review of a prospective funder, collaborator, or partner and the associated project, R&IS will seek to minimize the possibility that there is an unexpected or unidentified risk to the university’s operations or reputation.

Why is Due Diligence necessary?

Due diligence reviews serve two primary functions in ensuring a project’s research integrity.

1. They seek to minimise financial and legal risk by providing assurance that all specific areas of regulation have been considered, such as Export Controls, NSI, Nagoya, or HTA, as well as compliance with international sanctions and proscribed groups for which there may be limitations or prerequisite approvals prior to being able to collaborate.
2. They seek to identify and consider any aspects of a potential funder, collaborator, or partner’s operations or business which may cast the university in a negative light or contravene our moral values and code of conduct. This allows us to engage in research collaborations with the confidence that we are upholding values consistent with our objectives, and minimising reputational risk by proximity to collaborators or funders who may be found to be involved in unscrupulous, unethical, or unlawful activities.

What does a Due Diligence review involve?

The exact nature of a due diligence review varies with each organisation and project under scrutiny, but we will often look at a number of things in relation to a prospective partner, collaborator, or funder including, but not limited to:

· their incorporation status and public accounts

· their credit report

· their academic/research credibility

· any negative or controversial news articles concerning the organisation, the issues, and responses/outcomes

· whether they are on any sanctions lists or in any restricted/high risk regions

When looking at the project itself, in addition to whether any declarations or applications are required under specific pieces of legislation (such as export control), we will also review the nature of the work and identify whether it is in an area where further internal review is appropriate, to establish whether the outcomes align with university values. Examples of such areas may include work with the fossil fuel or defence sectors.

What should you consider?

R&IS will conduct these checks as part of our normal process for setting up a proposal or award and will liaise with academic colleagues in the event that there are any concerns or questions raised.

That said, if you have any concerns about the issues raised on this page or are concerned about the potential activities or connections of a potential collaborator, partner, or funder, then we would advise you to discuss these with us in R&IS prior to opening any extensive discussions with the partner or investing time in developing a project proposal or work plan.

If you wish to discuss a potential project or partner, or if you have any other queries around issues raised on this page, you can contact your R&IS pre-award Research Funding Officer, Research Development Officer, or Research Support Manager (identifiable here), or e-mail researchcompliance@warwick.ac.uk.