Series 79 practice questionhardDue Diligence
Which diligence workstream focuses on data privacy, system resilience, and breach history?
- AEnvironmental diligence
- BCybersecurity diligence✓ Correct answer
- CFairness opinion drafting
- DProxy solicitation
Explanation
Why B — Cybersecurity diligence
Cybersecurity diligence Cyber diligence evaluates how well the target protects sensitive data and whether material incidents or remediation costs exist. For businesses handling consumer or regulated data, that workstream can materially affect value and closing conditions.
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