Cybersecurity is a significant concern for VDR providers and their clients due to the highly sensitive nature of the information that is used in M&A deals, pre-IPO due diligence reviews restructuring or bankruptcy audits as well as proprietary intellectual property, fundraising initiatives, etc. Unauthorized access to or disclosure financing strategies for companies with different shares of this information could have serious financial consequences. VDR security features must include strong password and username control, end to security, tamper-proof design, and deterrent tools like document watermarking, in order to deter uninvited printing or downloading of sensitive information.
VDRs are able to support forensic investigations into security incidents, through the provision of a thorough audit trail and user activity. These records can aid investigators in determining what caused as well as the impact and extent of the breach. They can also provide insight into weaknesses in data security practices, allowing companies to correct their practices prior to the next breach.
In addition to ensuring that the VDR is protected it is crucial to ensure that users do not override recordings using other data (such as backups). Therefore, an optional feature could be added that allows those who are on board to start a type of marker within the recording. This marker could be an independent file that is not saved along with the original recording, preserving the integrity and accuracy of the data recorded. The requirement that users manually save recordings could be removed and replaced by the requirement that data should be saved only with a code or other secure method.