In a way, a 401(k) plan sponsor can be likened to a master chef–each has to follow a recipe. As long as the steps and measures are faithfully carried out, neither can be blamed if the cake gets left out in the rain.

For those assigned the fiduciary duty to construct a multi-layered retirement plan, fidelity to the written procedures remains the best way to avoid those nagging liabilities that seem to hang over their heads (see "How 401k Plan Sponsor Can Mitigate Fiduciary Liability Associated with Target Date Funds," FiduciaryNews.com, April 2, 2019).

"Trust the process." As sick and tired as you might be of hearing this, it's a useful mantra. Plan sponsors must not only "trust," they must insure they adopt a "process" they can give their undying loyalty to.

Due diligence represents the results of that written process. Due diligence offers a hefty ounce of prevention when it comes to fiduciary liability.

For a tool that packs so much power, plan sponsors can easily maintain a consistent due-diligence regimen. Really. It's as easy as a checklist, a template, an outline of steps and sub-steps. In other words, a systems analyst's dream.

Deep down, I think most plan sponsors realize this (well, maybe not the part about the systems analyst). If they don't then certainly their service providers do. That's why service providers are so keen in making sure they will pass any due diligence test. Plan sponsors might not quiz them on every occasion, but that doesn't mean service providers shouldn't be prepared.

Here's the one obstacle plan sponsors need to overcome to insure they stay on the due diligence path: discipline. If the process is as easy as pie (or "a piece of cake" to maintain our opening metaphor), then the only stumbling block preventing its consistent application is discipline.

It's easy to say, "stick to the plan," but the day-to-day routine can get in the way. It's too tempting to succumb to the lure of fighting the fire du jour when everything else (like the 401(k) plan) seems to be working in fine order.

The trouble is, that's exactly what "trouble" is counting on. It sneaks up on you when you least expect it – when you're distracted by the here and now – and it pounces on you the moment you cut an unsuspecting corner in the due diligence process.

A chef can't simply throw all the ingredients of a recipe in a bowl and expect the cake to magically appear. No, every culinary artist knows only by obeying the steps outlined can the sweet confection emerge from kitchen.

For the 401(k) plan sponsor, adhering to the documented process makes due diligence smooth and painless.

And that's the icing on the cake.