VDRs are a must-have tool for companies who handle sensitive data. They can also facilitate a variety of business processes. They should be considered part of a comprehensive data security strategy that includes regular risk assessments and training, incident management plans, ongoing monitoring and the introduction of robust technical controls.
The primary reason to use an vdr during business transactions is to secure confidential documents. A company that is conducting due diligence for a merger and acquisition will want to make it as easy as it is for the potential buyer of the documents to read the documents without worrying about theft or misappropriation. However, the need for speedy and secure document sharing could arise in countless scenarios like when legal counsel needs access to company records, auditors require access to audit reports https://digitalcloudroom.com/data-security-in-the-age-of-hackers-and-cybercriminals/ or when a board member on the other side of the world is looking to review important documentation.
VDRs have security features like access control, encryption, and audit trails that aid in ensuring conformance with regulations such as GDPR. Many VDRs also have options like dynamic watermarking. This overlays confidential documents with either a visible or invisible marker that can be traced in the event they are leaked outside the VDR.
In the event of an incident the detailed logs the vdr records can aid with forensic investigations. They can also assist companies understand what data was affected and how the breach happened. A vdr can also provide insight into areas that need improvement.
