VDRs are a key component of many business processes and are a vital tool for companies that handle sensitive information. However, they should be viewed as a component of a complete security strategy for data, which includes regular risk assessments and training and incident response plans as well as ongoing monitoring and the implementation of robust technical controls.

The primary reason for implementing a vdr during business transactions is to protect confidential documents. A company conducting due diligence for an acquisition or merger will seek data security in the age of cybercriminals to make it as easy as possible for the prospective buyer of the documents to read the documents without worrying about theft or misappropriation. But the need for rapid and secure document sharing could arise in a myriad of scenarios like the need for access by legal counsel to company records, auditors need access to audit reports, or when a board member on the other side of the world needs to look over important documents.

VDRs provide security features for data like access control encryption, access control, and audit trails that help ensure compliance with regulations, like GDPR. In addition, many VDRs offer features such as dynamic watermarking, which overlays confidential documents with visible or invisible markers that can be tracked when the document is leaking outside the VDR.

In the event of a breach, the detailed logs stored by a vdr can aid in forensic investigations. They can also help companies to understand the cause of the breach and what data could be affected. A vdr can also be used to reveal areas that require improvement.