VDRs are essential for companies that handle sensitive data. They can also facilitate a variety of business processes. However, they should be viewed as a part of a comprehensive data security strategy, which includes regular risk assessments and training and incident response plans along with ongoing monitoring, and the use of effective technical controls.
The primary reason to implement a vdr is to protect confidential business documents during transactions. A company conducting due diligence on an acquisition or merger will want to make it as simple as possible for the prospective buyer of the documents to read the documents without worrying about theft or unauthorized use. But the need for rapid and secure sharing of documents can occur in a variety of scenarios like when legal counsel requires access to company records, auditors require access to audit reports or when a board member who is located away needs to look over important documents.
Vdrs offer data security features such as access control encryption, access control, and audit trails that help to ensure compliance with regulations such as GDPR. Additionally, a lot of VDRs offer features such as dynamic watermarking that overlays confidential documents with invisible or visible markers that can be tracked in the event that a document is stolen outside the VDR.
In the event of an incident, the detailed logs that a vdr stores can help in forensic investigations. They can also assist companies to understand what data was affected and how the breach happened. In addition the auditing capabilities of a vdr can provide insight into areas where further improvement may be required.
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