Importance of Security in Virtual Data Room (VDR) Softwares

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Importance of Security in Virtual Data Room (VDR) Softwares

Businesses have benefited from virtual data room 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 virtual data room (VDR) today is for Mergers and Acquisitions, which require the transfer of highly confidential documents. For M&A deals of any scale, cybersecurity 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 virtual data room (VDR) software that ensures the 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 is:

Authentication System:

A two-step authentication and dynamic password system user authentication.

Encryption Technology:

Approved, reliable and safe encryption technology to keep documents safe and secure.

User permissions:

Allows administrator to restrict user permissions to “only view”, “download”, “edit”, etc.

Record/log of actions performed:

To keep a track of who used the software and what was updated/changed so that unauthorized access can be tracked.

Watermarking:

To prevent illegal usage of confidential documents stored in the software.

How can DCirrus help your business with your virtual data room (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:

• 256 bit 3 level encryptions (upload, transfer, rest mode), 2FA
• Data residency requirements support
• Dynamic password link and two step authentications for file sharing
• Customizable Dynamic Watermark feature
• User permissions to view, move, copy or download.

Therefore, DCirrus is a very reliable virtual data room (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.