Oct 15, 2025

For Better Diligence Use the ABCs of Critical Thinking

Diligence

Critical thinking is an essential skill for successful diligence. This is a 7 point guide for improving your critical thinking. When you improve critical thinking you improve diligence.

“The important thing is not to stop questioning. Curiosity has its own reason for existence.”

Albert Einstein – Old Man’s Advice to Youth: “Never Lose a Holy Curiosity”’, Life (2 May 1955)

“Emancipate yourselves from mental slavery. None but ourselves can free our minds.”

Robert Nesta Marley – Redemption Song – 1980

Questioning, curiosity, a free and clear mind, are not optional in performing diligence work, they are essential. The ability to see clearly and critically helps us separate fact from fiction, detect risks, and reach sound conclusions.

We can no longer take for granted that what we read, hear and even that what we see is what it appears to be. There are individuals, groups and governments that aim to manipulate, mislead and trick to further their own goals.

Technology advances have provided these bad actors with the tools to generate this fraudulent content and the means to disseminate it globally. It easy to spread “bad content” because the online environment is very effective at “laundering” content. Material is introduced online and it is picked up by careless or unsuspecting people and organizations. They essentially “launder” the material providing legitimacy by posting it on their sites and social media. They lend their reputations and endorsements until the illegitimate starts to look legitimate.

Because there are no gatekeepers, editors or fact checkers and there are no standards or rules that apply to posting online content we have to be our own editors, fact checkers and evaluators. This process starts with a very important skill – the skill to think critically.

Critical thinking is a practical tool, not an abstract concept. To help, here are some concepts you can use to spark your critical thinking skills.

The ABCs of Critical Thinking

Apply Critical Thinking Continually

Critical thinking is not abstract. It is a tool to help you spot and prevent being mislead by both reliable and unreliable sources, deep fakes, misinformation, fraud, and the increasingly blurred lines between fact, fiction and opinion. Get into the habit of continually applying critical thinking to all aspects of your diligence work starting with defining your project, through planning, research, analysis and synthesis. Starting is simple, ask yourself – what do I need to trust and to believe?

Be Open and Curious

Critical thinking doesn’t mean being negative or stubbornly opinionated. It means the opposite. Thinking critically is about staying open, curious, and actively engaged. A critical thinker values clarity, precision, and resolution. The goal is not to reject information but to resolve uncertainty with thoughtful analysis. Ask yourself, when presented with a specific source or content – does this meet my standard of trust?

Clarity is the Goal

Diligence is about reaching clarity. The path to clarity begins by questioning, identifying areas of concern and acknowledging doubts. Critical thinking is the mechanism that helps you catalogue those questions, doubts and concerns. As you read, see or hear something ask yourself this question – is it clear to me, if so why? If not, why not? What do I need to make it clear?

Do Research

Do Research to Turn Thought into Knowledge

Critical thinking without action is useless. Recognizing and raising issues is a first step. The next step is finding the material that you need to resolve, clarify or answer your questions. Research is your action. Research includes gathering facts or opinions, checking sources, consulting experts. Action is what transforms uncertainty into informed knowledge. As you gather these materials be critical – does this material advance may understanding, my trust, my resolution of issues?

evaluate

Evaluate, Analyze,

Critical thinking means continuous evaluation and analysis. You weigh ideas, evidence, sources, and opinions. You’re assessing truthfulness, consistency, and appropriateness using the facts, your experiences and sometimes even intuition to inform your views. It Use tools to move you through the process. Checklists, libraries of trusted sources, networks of experts, colleagues can help move you through your analysis. If you would like additional suggestions take a look at the RAS process described in: It’s Content Judgement Time – Are you up to the task?

Form answers for resolution, not confusion.

The purpose of critical thinking is to reach answers. It’s not about raising endless doubts and sowing confusion. Confusion and doubts may be the starting point but they cannot be the end point, that is not the goal. If at the end of your process you are still doubtful or confused – begin anew. Go back and ask yourself or your team:

  • Are you thinking in an open and questioning manner, do you need to break down or reframe the issue or even the project?
  • What is not clear? Be exact.
  • Is there a problem with your sources or technology, is there more research, different sources or technology available that would help?
  • Are there people with whom you can consult or brainstorm?
  • Do yo trust and believe your sources and if not why not and what do you need to do to reach a state of belief and trust?

Get ready to show your reasoning, not just your answers.

Critical thinking is like math, it’s not just about the outcome but also about the proof. Expect to explain, communicate, and even defend your thought process to regulators, senior management, or colleagues. Prepare for this by documenting and recording the research, sources, reasoning and process. Use this process as a review – Are there gaps, unsound reasoning, questionable conclusions in your process? Have you followed your organization and/or regulator’s required process, documentation and recording standards. Proper documentation isn’t an annoyance, it is the way to ensure transparency, consistency and inspire trust.

Critical thinking should begin and end every diligence project.

If you keep an open mind and question, research, evaluate, form answers, and communicate clearly you are engaging in critical thinking which is really just great thinking. Great thinking leads to great diligence.