Due diligence (DD) is somewhat related to DYOR. It refers to the investigation and care that a rational person or a business is expected to make before coming to an agreement with another party.
When rational business entities come to an agreement, it’s expected that they do their due diligence on each other. Why? Any rational actor wants to ensure that there aren’t any potential red flags with the deal. Otherwise, how could they compare the potential risks with the expected benefits?
The same is true for investments. When investors are scouting for potential investments, they need to do their own due diligence on the project to ensure that they can take into account all risks. Otherwise, they won’t be in control of their investment decisions and may end up making the wrong choices.