VDRs support a variety of business processes and are a crucial tool for companies that handle sensitive information. They should be considered as part of an overall security strategy for data, which includes regular risk assessments, training, incident response plans, ongoing monitoring and the implementation of robust technical controls.
The primary reason for implementing a vdr during business transactions is to secure confidential documents. For instance, a business involved in M&A due diligence will want to make it easier for buyers who are interested to look over private documents without fearing theft or misappropriation. But the need for rapid and secure sharing of documents can be triggered in a variety of situations like when legal counsel needs access to company records, auditors require access to audit reports, or when a remote board member is looking to review important documentation.
VDRs are equipped with security features such as access control encryption, audit trails to ensure compliance with regulatory standards, like GDPR. Many VDRs also offer features like dynamic watermarking. This covers confidential documents with either a visible or invisible marker that can be traced if they leak outside of the VDR.
In the event of a security breach, the detailed logs compiled by a vdr can aid in forensic investigations. It can also help companies understand how the breach occurred and what data may have been affected. A vdr could also provide insight into areas that need improvement.
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