“Connecting any strategic infrastructure to the Internet makes it vulnerable to security threats and most government systems… are extremely vulnerable to hacking, data leakages and hijacking.” – Arzak Khan
It is interesting to note that cyber theft is the fastest growing crime in the United States. In his quote mentioned above, Arzak Khan emphasizes the risk that modern governmental systems face; however, the business sector is just as vulnerable to hacking as the governmental systems are.
Unfortunately, the reality is that the rise of online shopping has added to the vulnerability of business to data hijacking. This is why the global cyber security community has predicted that cybercrime will cost the world up to $6 trillion every year by 2021; double what cybercrime cost the world in 2015.
What is a Virtual Data Room (VDR)?
These horrific facts beg the question of how to protect your company’s sensitive data such as customer credit card details, social security details, as well as their personal details. It does not matter what size your business is, or how you make a living. If you store any business and financial transactions online, your business is at risk of being hacked.
One of the most effective and protected ways of storing confidential information is in a virtual data room. A VDR is an online database where companies store and share confidential information. It is also described as a document filing system or electronic repository.
Why store documents in a VDR?
As mentioned earlier, companies store customer account details, financial transactions, supplier details, copies of invoices, GRNs (Goods Received Notes), and any other documentation that the company is required to keep a record of. Apart from the security aspect, the move to the paperless office has prompted the need to keep copies of the relevant documentation online.
This move to store copies of documents online also benefits the global corporation with a central headquarters. It is easy for all parties to access the documentation they require from a centralized location rather than having to physically travel to gain access to the documentation.
The last question that needs to be answered is should you set up your own VDR at your company’s head office, or should you sign up with a third-party VDR specialist.To answer this question, it is important to note that a professional VDR-supply company will have the sophisticated hardware, software, and the expertise to set up your VDR in such a way that it will be very difficult for anyone who does not have authorization to access your data. This is why it is preferable to go with the professionals rather than incur the cost of setting up and maintaining your own VDR.
Companies are relying on and will continue to rely heavily on computer systems (both hardware and software) to keep their businesses operational. Therefore, it makes sense to rely on a VDR to make sure that all of their business transactions are secured against hackers.