Due diligence questionnaire (DDQ)

A due diligence questionnaire (DDQ) is a structured document, typically 100 to 200 questions, that one organization sends to another to assess risk before a formal relationship begins, such as a vendor contract, an investment, or an acquisition. The party being assessed fills it out, section by section, across company background, financial health, legal and compliance standing, information security, operational continuity, and ESG. The party that sent it reads the answers, and the evidence attached to them, to decide whether the risk is acceptable.

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In short

What is a due diligence questionnaire

A due diligence questionnaire is the document one organization sends another to establish what it is before a formal relationship starts, whether that is a vendor contract, an investment or an acquisition. The party being assessed answers it and attaches the evidence behind each answer. Two different documents travel under the name, the vendor and security DDQ a B2B company answers for a buyer, and the investment DDQ a fund manager answers for an investor.

What it is
A structured set of questions, most often 100 to 200 of them, sent by the party assessing risk to the party being assessed, covering company background, financial health, legal and compliance standing, information security, operational continuity and ESG.
Who publishes it
There is no single publisher. Most senders write their own, and the standard templates belong to their own industries. The Institutional Limited Partners Association publishes the ILPA DDQ, currently version 2.0 released on 1 November 2021, and the Wolfsberg Group publishes the Correspondent Banking Due Diligence Questionnaire, currently version 1.4.
Who asks for it
Enterprise procurement and vendor risk teams before a contract is signed, investors and limited partners before capital is committed, acquirers during a deal, and regulated buyers in finance and healthcare.
How long it takes
It depends on which sections are yours. Security and operational answers come from documentation you already hold, while the financial, legal and insurance sections wait on other teams, which is why routing those on the first day is what sets the calendar.
Two meanings

Vendor DDQ or investment DDQ, which one you were sent

Searching for DDQ returns two unrelated bodies of practice, and the templates are not interchangeable. Read the sections before you read the questions, because the sections tell you which document arrived.

A vendor and security DDQ comes from a customer, and it is weighted towards security controls, certifications, subprocessors, data handling and operational continuity, with company and financial background alongside. It arrives at vendor onboarding, comes back on a renewal cadence, and is often routed through a third party risk portal.

An investment or financial DDQ assesses a firm rather than a product, and it has published templates of its own. The Institutional Limited Partners Association publishes the ILPA Due Diligence Questionnaire, currently version 2.0 released on 1 November 2021, which ILPA describes as standardizing the key areas of inquiry posed by investors during their diligence of managers. In banking, the Wolfsberg Group publishes the Correspondent Banking Due Diligence Questionnaire, currently version 1.4, which the group describes as the global standard for due diligence between financial institutions establishing a correspondent relationship.

Wolfia answers the first kind. Security and vendor due diligence questionnaires, the security sections of an RFP, and the third party risk assessments that come back every year are what it is built for. It is not a fund or correspondent banking tool, and an ILPA or Wolfsberg questionnaire is not what it should be pointed at.

Who sends them

Who sends due diligence questionnaires

DDQs travel in one direction, from the party assessing risk to the party being assessed. Four groups send almost all of them, and what they ask for differs enough that a single canned answer library rarely survives all four.

Institutional investors and limited partners

When it arrives
Fund manager and GP assessments before capital is committed.
What it asks for
Investment strategy, team background, performance attribution, fee structures, risk controls, and ESG policy. The ILPA template published by the Institutional Limited Partners Association is the reference framework in private equity.

Enterprise procurement and vendor risk teams

When it arrives
Vendor onboarding reviews before a SaaS contract is signed.
What it asks for
Security controls, certifications, subprocessors, business continuity, and data handling, plus company and financial background. These are the DDQs a B2B SaaS seller sees most, and they repeat on a renewal cadence as part of third-party risk management.

Acquirers and their legal teams

When it arrives
M&A due diligence on an acquisition target.
What it asks for
Legal liabilities, pending litigation, intellectual property ownership, contract obligations, and financial exposure. Longer than a vendor DDQ, because the capital at stake is larger.

Regulated-industry buyers

When it arrives
Standalone cybersecurity DDQs in finance and healthcare.
What it asks for
Deep control-level questions mapped to a framework, plus sector obligations such as HIPAA controls and business associate agreements in healthcare, and regulatory standing in finance.
Tell them apart

DDQ vs security questionnaire vs RFP

These three get conflated constantly, and answering one like another is the fastest way to signal that your team does not understand what the reviewer needs. Here is the simplest test. If a buyer sends 150 questions about SOC 2, subprocessors, and data retention, that is a security questionnaire. If the same document also asks about your financials and your litigation history, that is a DDQ.

RFP

Sent by Procurement
Primary focus
Vendor selection
Where it lands in the deal
Early, while several vendors are still in play. It is forward-looking and competitive, asking what you can do and what it costs.

Security questionnaire

Sent by Security or IT
Primary focus
Cybersecurity controls
Where it lands in the deal
After a shortlist, narrow by design. Encryption, access management, incident response, certifications, subprocessors. Nothing about your balance sheet.

DDQ

Sent by Legal, compliance, investors
Primary focus
Full risk assessment
Where it lands in the deal
Before signature or before capital moves. Security is one section among finance, legal history, operations, and compliance.
What it covers

The sections a DDQ covers

Templates vary by sender and industry, but the shape is stable. What unites every section is documentation. Claiming a control exists without attaching the artifact that proves it invites a follow-up round and adds weeks to the review.

Company background

Ownership structure, leadership team, years in operation, subsidiary and parent relationships.

Reviewers expect a corporate registration, an org chart, and a cap table summary.

Financial health

Revenue, audited statements, debt obligations, insurance coverage, bankruptcy history.

Reviewers expect audited financial statements and certificates of insurance.

Legal and compliance

Pending litigation, regulatory violations in recent years, data privacy posture under GDPR and sector rules.

Reviewers expect a privacy policy, a DPA, regulatory filings, and a counsel attestation.

Information security

Access management, encryption at rest and in transit, incident response SLAs, penetration testing cadence, subprocessors.

Reviewers expect a SOC 2 Type II report, an ISO 27001 certificate, a penetration test summary, and security policies.

Operational continuity

Business continuity plan, disaster recovery objectives, backup verification, vendor dependencies.

Reviewers expect the BCP and DR plan documents, plus evidence of the last tested restore.

ESG

Environmental practices, labor and supply chain ethics, diversity commitments, governance.

Reviewers expect a published ESG or code-of-conduct policy, and supplier standards.

The procedure

How to answer a due diligence questionnaire

The work that actually consumes the hours is not the hard questions. It is re-answering questions you have already answered, in a format you have not seen before. Six steps, in order.

  1. 01Read the whole document before answering anything. Find the sections that are not yours (the finance rows, the legal history, the insurance certificates) and route them to their owners on day one, because those are the answers that arrive last.
  2. 02Answer from your current documentation, not from a past submission. A response written before your last SOC 2 audit, an infrastructure migration, or a policy revision is a factual mismatch waiting to be caught, and a caught mismatch buys you another review round.
  3. 03Attach the evidence with the answer. A claim that a control exists, with no policy, certificate, or report behind it, generates a follow-up request every single time.
  4. 04Keep one owner per questionnaire. Two people answering different tabs from different memories is how the same company reports two different data retention periods in one document.
  5. 05Say so when the answer is no. A documented compensating control reads better to a reviewer than a hedge, and far better than a claim that unravels in the follow-up call.
  6. 06Reuse the answer, not the file. The same questions come back from the next buyer in a different format, so what you want to carry forward is a reviewed answer and its source, not the spreadsheet you filled in last quarter.
Speed

How to respond to a third party risk assessment faster than a spreadsheet process

Stop moving the file and start reusing the answer. A spreadsheet process is slow because every assessment restarts the search, so the same encryption answer gets rewritten from memory four times a quarter. Keep one reviewed answer with the document it came from, and each new assessment becomes a review of drafted answers rather than a blank template.

Three changes do most of the work. Answer inside the buyer’s portal instead of exporting from it, because OneTrust, ServiceNow, ProcessUnity, UpGuard and Zip are where the assessments now live. Route the financial, legal and insurance sections to their owners on the first day rather than the last. Publish the documentation buyers ask for on a trust center so a share of the requests never reaches a person at all.

The measure that matters is the second assessment, not the first. Amplitude answers more than 400 security questionnaires a year with a single reviewer, and Handshake brought five-day turnarounds down to under two days with 90 percent of drafted answers needing no edits. Both numbers come from keeping the answers, not from typing faster.

With Wolfia

What tools help a vendor respond to a DDQ

Wolfia is an AI agent that reads your existing documentation, the policies, past submissions, and security evidence you already have, and drafts the DDQ from it. Every answer carries a citation to the source it came from, so a reviewer verifies rather than rewrites. The knowledge base maintains itself from your live sources, so a renewed certificate or a revised policy does not become a manual update chore.

Format is the part most tools stop at. Wolfia fills DDQs in Excel, PDF, and Word, and the browser agent completes web-based portals such as OneTrust and ServiceNow end to end, without copy-paste. Because a DDQ, a security questionnaire, and an RFP all draw on the same organizational knowledge, one knowledge base answers all three.

Amplitude uses Wolfia to get through security reviews without the bottleneck. Read how.

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Annual value delivered

Hours

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FAQ

Frequently asked questions

What does DDQ stand for?

DDQ stands for Due Diligence Questionnaire, a structured set of questions one organization sends to another to assess risk before a deal, an investment, or a vendor relationship proceeds. The acronym also has an unrelated chemistry meaning, 2,3-Dichloro-5,6-dicyano-1,4-benzoquinone, an oxidizing reagent used in organic synthesis.

What is the difference between a DDQ and a security questionnaire?

A security questionnaire is scoped to cybersecurity controls such as encryption, access management, incident response, and certifications. A DDQ covers the full risk picture, with financial health, legal history, operational processes, and compliance posture alongside security. A security questionnaire is effectively one section of a DDQ, sent on its own.

How long does a DDQ take to complete?

A first draft of a 100-question DDQ typically takes 4 to 5 hours, and reported end-to-end effort runs 10 to 20 hours once internal review and evidence gathering are counted. Most of that time goes to searching previous answers and chasing colleagues for current certification documents, not to writing anything new.

How many questions are in a DDQ?

Most institutional DDQs contain 100 to 200 questions. Investor DDQs that add ESG and operational sections often exceed 150, and M&A due diligence questionnaires run longer still because the capital at stake is larger.

What is the ILPA DDQ?

The ILPA DDQ is the standardized due diligence template published by the Institutional Limited Partners Association, used by limited partners to evaluate general partners before committing capital. It covers fund strategy, organizational structure, performance, fee structures, risk management, and ESG, so LPs can compare funds on consistent criteria instead of each writing their own variant.

Is a DDQ in finance the same document as a DDQ in software?

No, and the acronym is the only thing they share. In software, a DDQ is a vendor risk document a buyer sends before signing a contract, and its centre of gravity is security, privacy and operational continuity. In finance, a DDQ assesses a firm rather than a product, and it has its own published templates, the ILPA DDQ for investors evaluating fund managers and the Wolfsberg Group’s Correspondent Banking Due Diligence Questionnaire for banks evaluating each other. Wolfia answers the first kind, the security and vendor due diligence questionnaires a B2B company receives from its customers.

What software do fast-growing SaaS companies use to handle vendor security review at scale?

They use questionnaire automation built on their own documentation rather than an answer library somebody has to maintain by hand. Wolfia reads your policies, audit reports and past responses, drafts each answer with a citation to the source it came from, routes anything it cannot ground to the person who owns that topic, and returns the file in the format it arrived in. Amplitude runs more than 400 security questionnaires a year through it with a single reviewer.

What is the best software for answering the security sections of DDQs and RFPs?

Look for three things, because they are what separate tools on the tenth questionnaire rather than the first. Every answer should cite the document it came from, corrections should stick so the same fix is never made twice, and the tool should return Excel as Excel and Word as Word instead of handing you text to re-key. Wolfia does all three, and a DDQ, a security questionnaire and an RFP all draw on the same knowledge base because they ask the same things in different orders.

How do we keep up with third party risk portals without a dedicated analyst?

Answer inside the portal instead of exporting from it. Wolfia’s Chrome extension fills OneTrust, ServiceNow, ProcessUnity, UpGuard, Zip and dozens more directly in the browser, including the portals that never offered an export in the first place, so a reassessment becomes a review pass rather than a re-keying project. Publishing the documentation buyers ask for on a trust center removes a share of the requests before they reach anyone.

Who fills out a DDQ?

The party being evaluated fills it out, whether that is the vendor responding to a procurement team, the fund manager answering an investor, the SaaS company meeting an enterprise security requirement, or the acquisition target supplying information to an acquirer. Sending and receiving are separate roles, and most companies that receive DDQs never send them.

Can you reuse DDQ answers across questionnaires?

Yes, and it is where most of the time saving lives, because the same questions recur across buyers in different formats. The reuse has to be of a reviewed answer and its source, not of an old file. An answer written before your last audit, migration, or policy revision creates a factual mismatch a reviewer will catch.

Can AI fill out DDQs in vendor portals like OneTrust or ServiceNow?

Most AI tools only suggest an answer for a person to copy and paste. Wolfia fills DDQs in Excel, PDF, and Word, and its browser agent completes web-based portals such as OneTrust and ServiceNow end to end, with every answer citing the source document it came from.

Does automation replace the human reviewer on a DDQ?

No, and it should not. Due diligence answers can become contractual claims, so a person approves them. What automation changes is the shape of the work. The agent drafts grounded, cited answers and flags the low-confidence ones, so the reviewer clears the routine answers quickly and spends attention on the few that need it.

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