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

The primary reason for implementing an vdr during business transactions is to safeguard confidential documents. A company that is conducting due diligence for a merger and acquisition will need to make it as simple as possible for the prospective buyer of the documents to review them without having to worry about theft or misappropriation. The need for fast secure sharing of documents can occur in many scenarios. For instance, when legal counsel needs access to the company’s records or audit reports or a board member who is located far away is required to review crucial documents.

VDRs provide security features for data such as access control encryption, access control, and audit trails that help to ensure compliance with regulatory standards, like GDPR. Many VDRs provide options like dynamic watermarking. This overlays confidential documents with either a visible or invisible marker that can be traced if they leak outside of the VDR.

In the case of a data breach, the detailed logs stored by a vdr can assist in forensic investigations. It can also help companies discover the source of the breach and what information could be affected. A vdr can also be used to provide insights into areas that need improvement.

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