VDRs support a variety of business processes and are an essential tool for businesses handling sensitive information. However, they should be viewed as a component of a complete security strategy for data, which includes regular risk assessments and training and planning for incident response, ongoing monitoring, and the implementation of robust technical controls.

The primary reason for implementing an vdr is to secure confidential documents during business transactions. For example, a company engaged in M&A due diligence will need to make it easy for buyers who are interested to examine confidential documents without having to worry about theft or misuse. But the need for fast and secure document sharing 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 remote board member needs to look over important documents.

VDRs provide security features for data such as access control, encryption, and audit trails that help ensure conformance with regulations https://digitalcloudroom.com/data-security-in-the-age-of-hackers-and-cybercriminals/ such as GDPR. In addition, many VDRs provide features such as dynamic watermarking. This overlays confidential documents with invisible or visible markers that can be traced when the document is leaking outside the VDR.

In the case of a breach the detailed logs kept by a vdr can aid in forensic investigations and help companies to understand the cause of the breach and what data may have been affected. A vdr can also be used to provide insights into areas that need improvement.