VDRs support a variety of business processes and are a vital instrument for companies handling sensitive information. They should be considered part of a comprehensive security strategy for data that includes regular risk assessments as well as training, incident response plans, regular monitoring and the introduction of robust technical controls.
The main reason for implementing an vdr during business transactions is to secure confidential documents. A business conducting due diligence in connection with a merger and acquisition will need to make it as simple as it is for the potential buyer of the documents to examine them without having to worry about theft or unauthorized use. The need for quick and secure document sharing can occur in many scenarios. For instance, if legal counsel requires access to company records or audit reports or a board member from a distance is required to review crucial documents.
VDRs provide security features for data such as access control, encryption, and audit trails that aid in ensuring conformance with regulations, like GDPR. Additionally, a lot of VDRs offer features such as dynamic watermarking that overlays confidential documents with visible or invisible markers that can be tracked when the document is leaking outside of the VDR.
In the case of a breach the detailed logs stored by a vdr can assist in forensic investigations. They can also help companies discover the source of the breach and what data may have been affected. A vdr can also be used to give insight into areas that need improvement.
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