VDRs are an essential tool for companies who handle sensitive information and support many business processes. They should be considered as part of an overall security strategy for data that includes regular risk assessments, training, incident response plans, regular monitoring and the implantation of strong technical controls.
The primary reason to use a vdr during business transactions is to secure confidential documents. A company conducting due diligence for an acquisition or merger will need to make it as easy as it is for the potential buyer of the documents to review the documents without worrying about theft or misuse. But the need for rapid and secure document sharing can occur in a variety of scenarios for example, when legal counsel require access to company records, auditors require access to audit reports, or when a board member on the other side of the world is looking to review important documentation.
Vdrs offer data security features such as access control encryption, audit trails that help ensure compliance with regulations such as GDPR. In addition, a number of VDRs include features like dynamic watermarking, which overlays confidential documents with invisible or visible markers that can be tracked if the document is leaked outside the VDR.
In the event of an incident the detailed logs the vdr records can aid with the forensic investigation. They can also assist companies understand what data was affected and how the breach occurred. In addition the capabilities of auditing a vdr can provide insights into areas where further improvements might be required.
