Confidential data of companies, which are valuable not only for the company itself but also for external parties, are subject to the greatest threat of cyber attacks. Check why it is highly recommended to use VDR solutions to secure sensitive information in the article below.
The Usage of Data Room Solutions for Businesses
Today, the handling of confidential data is often perceived solely in the context of the requirements of the law on the protection of personal data while losing sight of the fact that in the context of total digitalization, almost all data within a company is of real value and the leakage of many of them will have negative consequences for the business.
Over the past decade, the IT industry has grown significantly, with a corresponding increase in the number of mergers and acquisitions, share sales, and venture capital transactions. Millions of IT startups raise capital every day. None of them would want to lose the chance to get funding because the platform was too difficult to use. In such a competitive environment, auditing requires a user-friendly data room that works without plugins.
The dataroom solutions are used for timely detection and effective response to information security incidents. This will allow timely detection of malicious activity, attempts to hack the infrastructure, and the presence of an attacker, and take prompt measures to neutralize threats.
Secure Documents, Digital Assets, and Other Sensitive Information with the Data Room Solutions
Hackers can block the work of the company for a while. In many services, stopping work even for half an hour is critical – for example, when it comes to food delivery, a taxi, or an online store. Every minute the company’s losses are growing exponentially, and some users leave forever and stop using the service. To avoid the problems mentioned above, it is highly recommended to use the data room software.
Before the Internet, files were stored in physical data rooms. These rooms required additional costs, such as rented premises, a large amount of paper, staff, etc. There were also costs from professionals who wanted to use such rooms to review financial documents. On the part of the users, it was not only necessary to spend time and money in order to get to the room, but it was also necessary to make an appointment in advance and go through a large pile of documents.
With the advent of the Internet, this non-affective approach was refuted, and the process was transferred to a virtual data room. Among the most common causes of VDR usage to secure documents, digital assets, and other sensitive information are the following:
- In mergers and acquisitions.
Keep all confidential documents in a safe place where they will be labeled to prevent leakage. All participants in M&A transactions will have the level of access to files in the space that you set.
- To protect intellectual property.
Use VDR’s secure space to prevent your designs, know-how, patents, drawings, and any other sensitive material from being leaked.
- When conducting an audit or tender.
VDR provides a convenient format for the secure exchange of confidential documents during an audit or tender process. With space, you can control file actions, manage access rights, and be able to determine the source in case of a leak.