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VDR and Data Security
VDRs aid in many business processes and are a vital instrument for companies handling sensitive information. However, they should be viewed as part of a comprehensive security plan for data that includes regular risk assessments and training, incident response planning continuous monitoring, and the use of effective technical controls.
The main reason to implement an vdr when conducting business is to protect confidential documents. A company conducting due diligence in connection with an acquisition or merger will seek to make it as easy as possible for the prospective buyer of the documents to look over them without having to worry about theft or misuse. But the need for fast and secure document sharing could be triggered in a variety of situations such as when legal counsel requires access to company records, auditors need access to audit reports or when a board member on the other side of the world would like to review crucial documentation.
VDRs provide security features for data such as access control encryption, audit trails that help ensure conformance with regulations, like GDPR. Many VDRs also offer features such as dynamic watermarking. This is a way to mark confidential documents with the form of a marker visible or invisible that can be tracked if they are released outside of the VDR.
In the event of a security breach, the detailed logs stored by a vdr can aid in forensic investigations. It can also help companies determine the causes of the breach and what data might have been affected. A vdr can also provide insight into areas that require improvement.