This blog will explain to you:
A virtual data room is a virtual storage space. Companies use this storage space to store documentation for the process of due diligence. And in the preceding any merger or acquisition, one has to do Due diligence. It is the process of reviewing the financial records and the position of the companies entering into the said deal.
It is prima facie that the data stored in these spaces are highly sensitive and meant to be confidential. But if this data is vulnerable, it can cause tremendous loss to the companies. It is very vital that you keep stored data as confidential. A major portion of data stored by these companies is financial information. Financial information is nothing less very sensitive information. As much as the VDR aids the process of due diligence, there is also the risk of a data breach. Data breaches compromise data of the companies and put them in a vulnerable spot.
“Any unauthorised or accidental disclosure, acquisition, sharing, use, alteration, destruction of or loss of access to, personal data that compromises the confidentiality, integrity or availability of personal data to a data principal” Any data available is prone to a data breach. Since the companies use the virtual data rooms for due diligence, the data so stored in financial data. Hence, this is a breach of sensitive data. It is possible to report a data breach, and the authorities may take necessary action on the defaulter. However, the reputation of the companies is at stake, and they may suffer monetary losses. Therefore, it is very important to find a secure platform.
When there is a data breach, it is a violation of one’s right to privacy. No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home and correspondence, nor to unlawful attacks on his honour and reputation. The apex court of India upheld the right to privacy as a fundamental right. The court observed the right to privacy included spatial control. Plus it also observes the decisional autonomy and informational control. And it concluded that privacy was an integral part of human dignity.
Protecting one’s financial information also falls under the right to privacy. Every person has the right to keep their financial information private. And these companies also have the right to keep their data secure and private. There are cyber legislations that help combat data breaches and attacks. But however, they still happen. Companies need to choose carefully which platform on which they transact and store their data. Over the years, companies have been victims of data breaches. This has caused great inconvenience to them and their clients. Cognizant was recently tormented by a data breach. They anticipate a loss amounting to USD 50-70 Million. This is just one example of several data breaches that take place every day.
Choosing the most secure platform is extremely important. DCirrus provides the safest platform, be it virtual data rooms or cloud storage. The future group being one of our many customers, found our virtual data rooms very confidential and highly efficient. They use our virtual data rooms for merger and acquisition deals. Symonds Mirus Capital Advisors use our virtual data rooms, and they find it very time efficient and user friendly. Our data rooms have aided them to close Merger and acquisition deals on time.
At Dcirrus, we store your data locally. Our systems comply with GDPR and other privacy legislation. Plus we encrypt the transfer of files at multiple levels. There is an additional layer of multi-factor authentication, by which you will be able to block third parties from accessing your files. Since our systems are extremely secure, you will not have to worry about cyber attacks or data breaches. Since the risk of data breaches is greatly reduced, you will lose your data or face data breach losses.
Further, in any business, the employer or administration can control which employee has access to how much data. This reduces the risk of a data breach due to a slip internally. Unlike the other companies that provide cloud storage systems and virtual data rooms, DCirrus does not have access to your data. This is a kind of high-level confidentiality and privacy we provide. Prevention is better than cure, they say. The aftermath of a data breach causes great inconvenience to all stakeholders. Choose DCirrus and prevent any sort of cyber breach!
In a virtual data room, multiple people can access the stored data. It is predominantly used by companies going into merger and acquisition deals. And in such deals, the personnel of the companies will need to access the data and therefore, virtual data rooms are very convenient.
Parties that use a virtual data room will want it to be secure. Especially, legal proceedings will require a highly secure data room. And a secure data room is one that has maximum security and ensures most confidentiality and privacy. Since there is a great risk of a data breach, the system should have mechanisms to prevent a data breach. And the virtual data rooms provided by DCirrus are highly secure.
One uses the virtual data rooms in the process of due diligence. This means they can contain all kinds of documents like contracts, financial reports, employee information, documents relating to intellectual property rights, and so on. Technically, virtual data rooms can contain any sort of information.
Choose a secure data room provider. DCirrus is the safest platform. We ensure your confidentiality and privacy. Contact DCirrus to set up your virtual data room! Click here to request a demo: https://dcirrus.com/
 Section 3(36)(i) of the personal data protection bill, 2019.
 Section 2(29) of the personal data protection bill, 2019
Art. 17, International Covenant of Civil and Political Rights.
K.S. Puttaswamy (Retd.) v. Union of India, (2017) 10 SCC 1.