As the coronavirus forced most companies to shift their operations, communications, and file sharing to online platforms, several unintended consequences began to arise. As with anything, a major change will always result in some unexpected issues as things get ironed out. With the onset of the coronavirus pandemic, however, businesses had to make these changes almost overnight. Sudden new cybersecurity threats surfaced and required new methods of securing the business environment.
The risks identified included malware, viruses, worms, and ransomware, among others. A 2019 report found that 85 percent of organizations were already experiencing phishing and other social engineering attacks before the pandemic.
Fortunately, virtual data rooms provide a secure platform for businesses to share electronic confidential files. These virtual data rooms or VDRs are providing alternatives to physical data rooms and allowing businesses to share confidential information online. Let’s take a look at how businesses can manage secure document sharing during the COVID-19 pandemic.
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Ready Or Not – Collaborate
If a company hadn’t yet made the move to shift their communications and file sharing into online collaboration platforms, the coronavirus crisis has probably made the decision for them. Ready or not, a range of industries were forced into online operations. While the use of collaboration tools increased because of the pandemic, so too did security threats. Security experts estimate about 4,000 new cyberattacks a day since the start of the pandemic.
More than likely these malicious attackers are targeting popular communication apps and tools such as Microsoft Teams, Slack, Google, Zoom, and others. With this being the case, it is more important than ever that companies invest in services from a secure virtual data room provider to house confidential data.
What Is A Virtual Data Room?
Given the recent shift to online operations due to the pandemic, companies are looking to protect their electronic sensitive data through the use of virtual data rooms. A virtual data room, or VDR, is an online repository for a company’s secure and sensitive documents. Online data rooms provide a secure and controlled environment for businesses to share digital information with clients, investors, and company leadership.
VDRs can aid with the due diligence process while reducing the physical paperwork exchange that is usually involved. VDRs are also called virtual deal rooms because of the support that they can provide to numerous business processes and transactions. Besides the due diligence processes of an M&A transaction, it is also used in asset management. The VDR has made disclosing confidential information through the use of physical data rooms a thing of the past.
Virtual data rooms arrived in the business world in the early 2000s as document storage and sharing transitioned online. They have since grown more popular as businesses have expanded their online presence and processes.
How Do Virtual Data Rooms Work?
Virtual data room solutions are provided from firms like Caplinked and allow users to easily upload, sort, and store confidential data. One of the most convenient features of virtual data rooms is the customizable options for room structure based on the company’s needs. Easy to locate folders and file structures serve as a dropbox and storehouse for documents or files. Authorized team members and other third parties will have access to the information once all of the documents are uploaded.
Similar to that of large financial institutions and major banks, virtual data rooms offer high-end security guarantees. Security levels can be configured according to the administrator’s preferences and the needs of various users. Once the VDR has been set up and the security level addressed, users such as bidders, buyers, lawyers, or executives will be able to log in and view necessary documents.
The administrator retains full control to grant and remove access to options such as the ability to download or print documents. They can also apply optional features such as dynamic watermarks, and expiration dates to documents.
The valuable data housed inside a virtual data room is often stored in a variety of places. It can be located in various countries or even continents, depending on where the virtual data room provider has data centers. These providers invest a lot of money to create a secure platform for their clients’ data.
With virtual data rooms, companies can have complete control over their sensitive information and offer secure access to authorized users. The ease of use, confidentiality, and security offered by online data rooms make this one of the best choices for companies navigating the new pandemic-induced online workplace.
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