From Compliance to Capability: Reframing Financial Due Diligence in Global Health Partnerships

Abstract

Financial due diligence is a central component of global health financing, primarily designed to ensure accountability and mitigate financial risk. However, in practice, it is often applied as a compliance-driven, pass/fail mechanism, which may limit the participation of high-potential partners, particularly in low-resource settings. This paper argues for a reframing of financial due diligence from a risk-screening tool to a strategic enabler of partner capability and programme effectiveness. Drawing on existing literature and practice-based insights, the paper proposes a capability-oriented due diligence approach that integrates risk management with structured capacity building. The paper contributes to ongoing discussions on global health financing by outlining a conceptual framework that balances accountability with the need to support innovation and strengthen institutional capacity.