Businesses have benefited from Virtual Data rooms ever since the idea was first developed into a software in the early 2000s. Today, most of the due diligence procedures are carried out on Virtual Data Rooms.
One of the major uses of VDR today is for Mergers and Acquisitions, which require transfer of highly confidential documents. For M&A deals of any scale, cyber security is one of the most important factors that the companies involved need to take care of, as a data breach could cost more losses to not only a company’s finances, but also, goodwill and reputation. Therefore, more and more companies are looking for safe and credible M&A solutions.
According to a report by Fore scout, 62% of the organizations said that their companies face major cyber security risks acquiring new companies, and cyber risk is their biggest concern. 53% of their survey respondents reported that they had encountered cyber security and data breach issues which had almost jeopardized their M&A deal.
The problem does not lie merely in the process of M&A; companies who have had data and security breaches lose out money because of the loss in their credibility itself. In 2017, Yahoo lost $350 million because of Verizon discounting its original purchase price of $4.8 billion after Yahoo’s previous data breaches were exposed.
Therefore, it is best advised to choose a VDR software which ensures utmost security and no chance of any data breach. The features that one needs to look for to get an idea of the software’s security standards are:
A two-step authentication and dynamic password system user authentication.
Approved, reliable and safe encryption technology to keep documents safe and secure.
Allows administrator to restrict user permissions to “only view”, “download”, “edit”, etc.
To keep a track of who used the software and what was updated/changed so that unauthorized access can be tracked.
To prevent illegal usage of confidential documents stored in the software.
How can DCirrus help your business with your VDR needs?
DCirrus has never reported a data breach since its inception. Which is because of the thoughtfully engineered security features we have, which are:
Therefore, DCirrus is a very reliable VDR solution when it comes to data security, and your team would never have to worry about security breaches again, because your data is your right.