ISC2 CISSP Practice Question

The correct answer is conducting due diligence on the security posture of the target company. Due diligence is a critical first step in the acquisition process from a security governance perspective because it allows the acquiring company to evaluate and understand the security risks, controls, compliance status, and potential vulnerabilities associated with the target company before finalizing the acquisition. This assessment helps identify security issues that might affect the valuation, integration plans, or even the decision to proceed with the acquisition. Security due diligence typically includes reviews of the target's security policies, procedures, infrastructure, past incidents, compliance with relevant regulations, and intellectual property protections. Without this critical first step, the acquiring company might inherit unknown security risks that could lead to breaches, compliance violations, or reputational damage post-acquisition.