VDRs are essential for businesses that handle sensitive data and facilitate many business processes. However, they should be viewed as a part of an overall security plan for data that includes regular risk assessments and training, incident response planning, ongoing monitoring, and the implementation of strong technical controls.

The primary reason to implement an vdr is to secure private documents during business transactions. For example, a company involved in M&A due diligence will need to make it easy for the prospective buyer to review confidential documents without having to worry about theft or misuse. But the need for fast and secure document sharing could arise in a myriad of scenarios, such as when legal counsel requires visit our website access to company records, auditors need access to audit reports or when a board member from a distant location wants to review critical documentation.

VDRs provide security features for data like access control, encryption, and audit trails to ensure compliance with regulations such as GDPR. In addition, a number of VDRs offer features such as dynamic watermarking, which overlays confidential documents with invisible or visible markers that can be tracked in the event that a document is stolen outside the VDR.

In the event of an incident the detailed logs a vdr can store can be helpful with forensic investigations. They can also assist companies understand what data was affected and how the breach took place. A vdr can also be used to provide insights into areas that require improvement.