http://digitalcloudroom.com/what-is-the-best-type-of-data-room-for-me/
VDRs are a must-have tool for companies that handle sensitive data and are a key element in many business processes. However, they should be viewed as part of a comprehensive data security strategy, which includes regular risk assessments and training and incident response plans along with ongoing monitoring, and the use of effective technical controls.
The primary reason to implement an vdr is to secure confidential documents during business transactions. For instance, a firm engaged in M&A due diligence might wish to make it simple for the prospective buyer to review private documents without fearing theft or misuse. But the need for rapid 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 board member on the other side of the world needs to look over important documents.
Vdrs offer data security features such as access control encryption, access control, and audit trails to ensure conformance with regulations such as GDPR. Many VDRs offer additional options like dynamic watermarking. This is a way to mark confidential documents in the form of a marker visible or invisible which can be tracked in case they are leaked outside of the VDR.
In the case of a data breach, the detailed logs kept by a vdr could aid in forensic investigations. It can also help companies discover the source of the breach and what data might be affected. Additionally, a vdr’s auditing capabilities can provide information on areas where further improvements might be needed.