VDRs facilitate many business processes and are a crucial tool for businesses handling sensitive information. They should be considered as part of a comprehensive security strategy for data, which includes regular risk assessments and training, incident response plans, continuous monitoring and the introduction of robust technical controls.
The primary reason to implement the use of a vdr would be to protect confidential business documents during transactions. For example, a company engaged in M&A due diligence might need to make it easy for buyers who are interested to access confidential documents without fear of theft or misappropriation. However, the need for speedy and secure sharing of documents can arise in countless scenarios for example, the need for access by legal counsel to company records, auditors need access to audit reports or when a remote board member wants to review critical documentation.
Data security features in vdrs include access control encryption, access control, and audit trails that help to ensure compliance with standards for regulatory compliance such as GDPR. In addition, a number of VDRs include features like dynamic watermarking, which covers confidential documents with invisible or visible markers that can be traced in the event that a document is stolen outside of the VDR.
In the event of a breach, the detailed logs kept by a vdr may aid in forensic investigations and assist companies to understand the cause of the breach and what data might have been affected. Additionally, a vdr’s auditing capabilities can provide insight into areas where further improvements may be required.
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