VDRs are a must-have tool for companies who handle sensitive data and are a key element in many business processes. However they should be considered as part of a comprehensive data security strategy, which includes regular risk assessments and training and incident response plans continuous monitoring, and the use of effective technical controls.

The primary reason to implement the use of a vdr would be to protect confidential business documents during transactions. A company conducting due diligence prior to a merger and acquisition will wish to make it as easy for the prospective buyer of the documents to look over them without having to worry about theft or unauthorized use. But the need for rapid and secure sharing of documents can occur in a variety of scenarios such as when legal counsel require 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.

Data security features in VDRs include access control encryption, access control, and audit trails to ensure compliance with regulatory standards such as GDPR. Many VDRs also offer options like dynamic watermarking. This overlays confidential documents in a visible or invisible marker that can be tracked if they leak outside of the VDR.

In the case of a data breach, the detailed logs stored by a vdr could aid in forensic investigations https://digitalcloudroom.com/data-security-in-the-age-of-hackers-and-cybercriminals/ and assist companies to understand the cause of the breach and what data might be affected. A vdr could also provide insights into areas that need improvement.