Red Label
Red Label
Methodology RL-M-2026-002

Our Source Hierarchy: Primary vs. Secondary vs. Open Source

Every DD report cites sources. Very few tell you what those sources are actually worth.

Read Time 8 Minutes
Sources 12 Verified

A-F / 1-6

NATO's source evaluation code: reliability (A-F) and information confirmation (1-6)

NATO STANAG 2511 (Admiralty Code), adopted 1939

The Problem

A finding backed by a single news article has different weight than one corroborated by three independent interviews. Most DD reports do not distinguish between them.

"Sources confirmed" could mean anything from a database hit to an on-the-ground conversation with someone who was in the room. The phrase tells you nothing about reliability.

The Gap

The British Admiralty developed the A-F/1-6 source classification system in 1939, later adopted by NATO and the U.S. Intelligence Community. Commercial due diligence has not adopted this discipline. We apply IC tradecraft to commercial intelligence.

Intelligence Collection Disciplines

The U.S. Intelligence Community recognizes several primary collection disciplines, commonly called "INTs." The core five shown here are often expanded to six when GEOINT (Geospatial Intelligence) is counted separately from IMINT. Each serves a distinct purpose and has different reliability characteristics.

The Core Intelligence Disciplines

HUMINT Human Intelligence Interviews, expert networks OLDEST METHOD SIGINT Signals Intelligence Communications intercept NSA DOMAIN OSINT Open-Source Intelligence Media, records, filings MOST ACCESSIBLE IMINT Imagery Intelligence Satellite, aerial, UAV NGA DOMAIN MASINT Measurement & Signature Radar, nuclear, acoustic WMD FOCUS RED MARKERS = PRIMARY FOCUS FOR COMMERCIAL DD Source: Office of the Director of National Intelligence

Our Source Hierarchy

We classify every source by type. Here is our four-tier framework, adapted from IC tradecraft for commercial due diligence.

Tier 1 Primary Sources

Direct, unmediated access. Highest reliability.

  • Principal interviews
  • First-hand document review
  • On-ground observation

A-1 Rating

Tier 2 HUMINT

Human sources. High value for context. Requires triangulation.

  • Industry expert interviews
  • Former employees, competitors
  • Local advisors, in-market contacts

B-C Rating | Cross-reference required

Tier 3 Secondary Sources

Official records. Reliable for facts. Limited for context.

  • Government, regulatory records
  • Corporate registries, filings
  • Court filings, financials

A-B Rating | 2-3 Confirmation

Tier 4 OSINT

Public information. Useful for leads. Requires verification.

  • Media coverage, press reports
  • Social media, digital footprint
  • Commercial databases

C-F Rating | Research lead only

The IC Reliability Rating System

The U.S. Armed Forces and Intelligence Community use a two-part evaluation code. The first part (letters A-F) rates source reliability. The second part (numbers 1-6) rates information confirmation.

Source Reliability

A Completely reliable
B Usually reliable
C Fairly reliable
D Not usually reliable
E Unreliable
F Reliability cannot be judged

Information Confirmation

1 Confirmed by other sources
2 Probably true
3 Possibly true
4 Doubtfully true
5 Improbable
6 Truth cannot be judged

Example Rating

A finding rated B-2 means: "usually reliable source, probably true information." This tells you exactly how much weight to give the finding. A rating of E-5 means: "unreliable source, improbable information." Very different decision weight.

Why This Matters

ICD 206, issued by the Director of National Intelligence, mandates that all disseminated analytic products include source information. The directive states that "thorough and consistent documentation enhances the credibility and transparency of intelligence analysis and enables consumers to better understand the quantity and quality of information underlying the analysis."

Commercial due diligence has no equivalent requirement. Most DD reports cite sources without evaluating them. A footnote to a Reuters article has the same visual weight as a first-hand interview with a former CEO.

Source Tier to Decision Weight

Source Tier Decision Weight Use For
Tier 1 (Primary) Decision-ready Final judgments, kill criteria, deal terms
Tier 2 (HUMINT) High weight with triangulation Context, reputation, undocumented history
Tier 3 (Secondary) Factual foundation Ownership, financials, litigation, regulatory status
Tier 4 (OSINT) Research lead only Identifying areas for deeper investigation

The All-Source Approach

Best practice is not choosing one tier. It is combining them. The IC calls this "all-source intelligence." Each discipline is suited to collecting a particular type of data, allowing the analyst to examine all facets of a target.

How Sources Reinforce Each Other

OSINT Identifies leads HUMINT Provides context PRIMARY Confirms findings HIGH CONFIDENCE Finding DECISION-READY When all tiers align on a finding, confidence increases When they conflict, we tell you why

Key Insight

We mark every finding by source tier. You know exactly what you are getting. A high-confidence finding from Tier 1 sources is decision-ready. A low-confidence finding from Tier 4 alone is a research lead, not a basis for action.

Questions to Ask Your DD Provider

The Intelligence Community requires source documentation on every finding. Commercial due diligence has no equivalent standard. Here is what to ask:

Do you classify sources by reliability tier?

The IC uses A-F reliability codes on every source. Most DD reports cite sources without evaluating them. Ask: "How do you distinguish between a database hit and a first-hand interview?"

What percentage of findings come from primary sources?

Database searches are not the same as human intelligence. Ask: "What percentage of your findings are based on principal interviews, direct document review, or on-ground observation versus secondary sources?"

Do you disclose source limitations?

ICD 203 requires analysts to state uncertainties. Ask: "Do you explicitly state what intelligence gaps exist and what would change your assessment?"

Can I see your source methodology documentation?

IC analysts must follow documented analytic standards. Ask: "Do you have a written framework for source evaluation, and can I review it before engagement?"

Red Label Difference

Most DD providers cite sources without evaluating them.

Red Label marks every finding by source tier using IC tradecraft. You know exactly what you are getting.

Ask your DD provider: What percentage of your findings come from primary sources versus database searches?

Where you got it determines how much you should trust it.

Data Sources

Claim Source Status
Core intelligence disciplines (HUMINT, SIGINT, OSINT, IMINT/GEOINT, MASINT) Naval War College Intelligence Studies Verified
A-F/1-6 source evaluation code system (Admiralty Code, 1939) NATO STANAG 2511 / Admiralty Code Verified
ICD 206 sourcing requirements Office of the DNI - ICD 206 Verified
HUMINT is oldest method for collecting information Office of the DNI - What is Intelligence Verified
NSA responsible for SIGINT collection NSA - Signals Intelligence Overview Verified
OSINT volume makes value assessment difficult ShadowDragon - What is OSINT Verified
All-source intelligence combines multiple disciplines Maltego - Intelligence Collection Disciplines Verified
OSINT and HUMINT complement each other in DD Huginn & Muninn Intelligence Verified
Primary vs secondary research in CDD Freshminds - CDD Guide Verified
K2 Integrity DD methodology K2 Integrity - Due Diligence Verified
Intelligence cycle and analysis process ASIS International Verified
Intelligence report writing standards SpecialEurasia - Report Writing Verified