VDRs are essential tools for companies handling sensitive data. They can also facilitate a variety of business processes. They should be considered part of a comprehensive security strategy for data that includes regular risk assessments, training, incident response plans, ongoing monitoring and the introduction of robust technical controls.
The primary reason for implementing a vdr during business transactions is to protect confidential documents. For instance, a company involved in M&A due diligence might want to make it easier for the prospective buyer to examine confidential documents without having to worry about theft or misuse. But the need for rapid and secure document sharing can arise in a myriad of scenarios for example, when legal counsel require access to company records, auditors require access to audit reports or when a board member who is located away would like to review crucial documentation.
Security features for data in vdrs include access control encryption mechanisms, access control, as well as audit trails to ensure compliance with regulatory standards like GDPR. Many VDRs provide features like dynamic watermarking. This covers confidential documents with https://digitalcloudroom.com/vdr-ability-to-provide-secure-storage-for-sensitive-company-documents/ an invisible or visible marker that can be traced if they are released outside of the VDR.
In the event of an incident, the detailed logs that a vdr can store can be helpful in forensic investigations. They can also assist companies understand what data was affected and how the breach took place. A vdr could also provide insights into areas that require improvement.