https://digitalcloudroom.com/how-to-use-automation-tools-for-your-own-technology-due-diligence/
VDRs facilitate many business processes and are a vital tool for businesses that handle sensitive information. They should be considered part of a comprehensive security strategy for data that includes regular risk assessments and training, incident response plans, ongoing monitoring and the implementation of robust technical controls.
The main reason for implementing an vdr during business transactions is to safeguard confidential documents. For example, a company engaged in M&A due diligence might wish to make it simple for prospective buyers to review confidential documents without worrying about theft or misappropriation. However, the need for quick and secure document sharing could occur in a variety of scenarios like when legal counsel require access to company records, auditors need access to audit reports, or when a board member who is located away would like to review crucial documentation.
VDRs are equipped with security features like access control, encryption, and audit trails that aid in ensuring compliance with regulatory standards, like GDPR. Many VDRs provide options like dynamic watermarking. This overlays confidential documents in an invisible or visible marker that can be tracked if they leak outside of the VDR.
In the event of an incident, the detailed logs that a vdr keeps can assist in forensic investigations. They can also assist companies understand what data was affected and the manner in which the breach occurred. A vdr could also provide insights into areas that require improvement.