Since the Covid-19 pandemic took the world by storm, there has been an influx of rogue cybercriminals who have infiltrated thousands of systems and exposed billions of company records around the world. Cybercrime cases have spiraled by 300% within the United States. This increased data security risk has exposed huge gaps in information security within many organizations. The advent of remote working has made things even worse after most employees fell prey to phishing emails and online scams.
Virtual data rooms are secure online storage spaces that are used to reserve vital company documents such as financial records, employee data and M&A paperwork. If you still aren’t using a VDR, then you may be exposing your firm’s confidential data to hackers, making it easier for cybercriminals to penetrate your system. Firmex provides the most robust virtual data rooms to companies looking to implement data due diligence.
Here are 4 reasons why using a virtual data room is a no-brainer:
1. It secures all your information
The most important benefit of using a VDR is protecting privileged data and preventing all types of security breaches. These days, hackers usually take advantage of unsecured cloud storage and weakly encrypted company emails to extract confidential information and introduce harmful malware into critical systems. Virtual data rooms are equipped with multiple layers of security to prevent cyberattacks and maintain data integrity. Some of their security features include intrusion detection tools, multi-step authentication and website firewalls.
2. It enhances collaboration
Virtual data rooms also make it easier for team members to collaborate on different projects. By setting user permissions and access controls, you can conveniently choose who can access, store data and make changes to a particular data room.
Today, information classification has become quite essential for most businesses. Document integrity management systems should be designed robustly to ensure that only authorized parties can access certain data. Data rooms can certainly help improve information sharing and collaboration.
3. It reduces overhead costs
The cost of hiring a VDR provider is little compared to the cost of dealing with a cyberattack. However, some brands would rather splurge their money on unnecessary excursions instead of spending it to fortify their data management system. Creating an in-house cybersecurity division can be expensive, so it’s better to outsource this vital function.
Getting a reliable virtual data room can also prevent sensitive data leaks from happening. Most hackers who infiltrate company systems and extract top-secret info usually use it for blackmail, prompting victims to part with millions of dollars every year. This can destabilize the progress of any firm and cause most businesses to file for bankruptcy.
4. It maintains the confidence shareholders
Since virtual data rooms are typically impenetrable, they can be used to gain the confidence of your shareholders. After all, we all want to feel secure with our investments. Employees will also feel better knowing that their personal information is kept under heavy lock and key. It’s easier to close M&A deals if you store all your documents in a data room.
The perks of having a VDR are inexhaustive. Hopefully, the benefits discussed above will encourage you to hire a revered virtual data room provider.