A virtual data room is by far one of the most secure ways for organizations to keep their sensitive data safe. Everyone knows that if a company is exposed to a data breach it can result in loss of reputation and major losses, in the worst cases even bankruptcy. But VDRs were and are designed to provide strong protection for your documents during storage and sharing within the program. In this article, we’ll look at exactly how a VDR protects you from data breaches and what other benefits it has for the company.
High level of security
So, virtual data rooms are considered one of the most secure ways to store information, the level of protection is similar to the protection of banking or military systems. They offer multiple layers of protection from both external intrusions and internal threats. Thus, good providers include virus protection, password protection, and data access control features. The administrator himself regulates access to the documents and decides to whom it is granted and to what extent. With this function, the risk of data leakage is reduced to almost zero.
But that’s not all, if a leak does occur, you will have nothing to worry about because high-quality data rooms also have a data encryption function, which without authorized access documents will not provide any value. Additional security features also include watermarks on documents and setting file expiration dates.
In addition to security features, VDRs also improve many of a company’s work processes, and below we will explain how this happens.
Reporting without the slightest risk
The Data Room, with the above security features, can freely provide access to its reports to a third party within the program. This is a necessary process during a transaction or due diligence. You give potential partners temporary access to your VDRs and they can study your company’s history in peace of mind from their desks. This saves time and builds trust.
Your benefit is that you can track users’ actions and thus know what customers pay attention to the most during their due diligence, and then work harder in the future.
Important transactions can be made quickly
VDR greatly simplifies many processes, due diligence being one of them. With mass document upload, indexing, and drag-and-drop functionality, you can instantly load all the documents you need into the space and organize them properly so your customers have access to everything they need right away. You can exchange information and clarify certain points either in an encrypted chat or with a Q&A function without wasting a single minute.
It also minimizes the factor of human error because important aspects of the work are automated. VDR itself provides you with reports and audits, so you don’t have to worry about your clients finding any mistakes in your documents. Everything will go as smoothly as possible.
It saves you money
Virtual data rooms were not always there, when technology was not so advanced, companies used physical data rooms to store documents as well as to transact. It wasn’t as secure and took up a lot of resources on employee salaries, printing, paper ink, the paper itself, stapling documents as well as renting the room. Now the business strives to be as cost-effective as possible, and the data room is even more profitable and efficient, and flexible compared to the previous method. You can access it whenever and wherever you want.