Role of VDR in Banking and Finance

Virtual data rooms have taken the market by storm with a new wave of popularity following the pandemic. Now, interest in working with data remotely has arisen not only because it is convenient and economical but also allows people to be anywhere in the world while working on a project.

Why is this needed if there is a corporate Dropbox and FTP?

Let’s look at the most common scenarios for using a virtual data room:

    • It is necessary to send a document to an external counterparty, but retain access rights management and control over the dissemination of transmitted information. It is no secret that at the time of transfer of the document to a third party, the owner of the document irretrievably and completely loses control over its fate. Often there is a situation where TK or drawings of commercial value fall into the hands of competitors or are in the public domain;
    • For design organizations, the actual problem is when it is necessary to provide access to data to the working group only for a certain period (the time of work on the project), and then guaranteed to revoke access rights;
    • Retailers generally need to protect valuable data from company employees who are at risk or subject to “turnover”, such as sales representatives or merchandisers;
    • Developers and solution designers need to control the integrity of the customer, make sure that the code developed and submitted by them for consideration will not be transferred to another contractor.
    • Based on the foregoing, it is obvious that not a single public cloud service, and even more so obsolete FTP, is not able to fully protect the company from these risks. But a virtual data room with the right set of tools can do just that. Let’s take a closer look at this toolkit.

How the data room works

The Virtual Data Room allows you to individually manage access rights for different users and groups.

Virtual data rooms allow you to manage the lifetime of documents. This feature is useful when a shared document contains information that will become outdated after a certain period, or when a project team gains access to the document and should revoke that access after the project is completed.

The location where corporate data is stored

The storage location for your information can be either the servers of a company that rents out virtual rooms or your servers. Of course, the second option is suitable for established large enterprises that are confident in their abilities on this front. This means that all issues of memory and security, reliability will be on your shoulders.

Conclusions

Of course, the use of a virtual data room entails inevitable one-time implementation costs and recurring costs associated with maintaining and owning a data room. And yet, today it is perhaps the only available way to protect company data outside the corporate perimeter.

It is better to look towards solutions that provide an integrated approach to protecting corporate data throughout the entire life cycle of a document: from the moment it is transferred, used, stored, and until it is deleted. To be fully protected, a virtual data room must-have features that protect documents after they are uploaded from the virtual data room, such as document DRM protection to replace AD ​​RMS and enterprise mobility management tools.

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How to use the virtual data room for finance and business?

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