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VDRs are an essential tool for companies who handle sensitive data. They can also facilitate a variety of business processes. They should be considered as part of an overall data security strategy that includes regular risk assessments, training, incident response plans, regular monitoring and the introduction of robust technical controls.

The main reason for implementing a vdr during business transactions is to safeguard confidential documents. For instance, a company engaged in M&A due https://digitalcloudroom.com/data-security-in-the-age-of-hackers-and-cybercriminals/ diligence would want to make it easy for buyers who are interested to look over private documents without fearing theft or misuse. The need for fast 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 who is located far away needs to review critical documents.

VDRs are equipped with security features like access control, encryption, and audit trails that help to ensure compliance with regulatory standards, like GDPR. Many VDRs also have features like dynamic watermarking. This covers confidential documents with a visible or invisible marker that can be traced if they are released outside of the VDR.

In the event of a breach, the detailed logs created by a vdr may aid in forensic investigations and help companies discover the source of the breach and what data might have been affected. A vdr can also be used to provide insights into areas that need improvement.

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